(To prevent unauthorized use, it will be published in due course.) Abstract: With the advancent of technology and the widespread coverage of intelligent networks, the ergence of the ga industry in recent years has been evident to the public. The way gas are disseminated is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Consequently, ga companies must continuously integrate resources, innovate, and improve performance to keep pace with rapid developnt. The diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as a preferred model for enterprise developnt, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of the diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy ans adopted by enterprises in their operations to capture new markets and expand into new markets. It is also a strategic plan that companies use to avoid the risks encountered in operating a single business and to enter new business fields in a targeted and prepared manner. By practically applying the diversification strategy to ga companies, it can effectively enhance company performance and bring about a qualitative change in the company's developnt.
1. The Macroeconomic Background of the Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture are showing a vibrant recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to the level prior to the pandemic[1]. This is extrely favorable news for the gaming industry, which holds a significant portion of the cultural industry. Although the arrival of the pandemic did not greatly impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The revival of the cultural industry implies that the large-scale developnt and prosperity of the cultural industry can lead more ga companies onto a path of sustainable developnt[2].
From last year's outbreak of the pandemic to the current stabilization, the governnt has introduced relevant policies from various aspects, such as finance, regulations, and finance, to support the developnt of the cultural industry. Although the pandemic hindered people's travels, it could not control the speed of online dissemination. More and more new dia appeared, driving the developnt of the cultural industry during the pandemic prevention period. However, since all companies wanted to enter the online market, the competitive environnt among the cultural industries beca very intense. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But within these short two years, many successfully transford cultural industries erged. Most of these companies accelerated transformation and upgrading by relying on the diversification strategy model. During the pandemic prevention, as residents' consumption levels significantly increased, they also gained substantial rewards, obtaining more diversified developnt models and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating by most ga companies[3].
2. Brief Analysis and Classification of the Diversification Strategy
(a) Brief Analysis of the Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the founder of strategic managent. In his book "Corporate Strategy," he ntioned the classification of the diversification strategy. This world-influencing strategic model has been covered in the managent guidelines and policies of several countries, so much so that today every enterprise, big or small, seeks to establish its position through diversification strategy developnt models[4].
(b) Classification and aning of the Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from the diversification strategy also have varying anings. Horizontal diversification refers to the enterprise producing new products that et new user demands using original market conditions, thus driving market consumption. Vertical integration is when an enterprise, depending on its developnt situation, vertically extends using the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification emphasizes the innovation of existing technologies and requires manufacturing new products within the existing production scope. The entire process is realized through the transformation of existing technologies. Conglorate diversification focuses more on expanding the scope of business changes. Enterprises need to connect with factors related to their products, such as raw materials, technology, and markets, to expand their scope of business[5].
3. Impact of the Diversification Strategy on the Performance of Ga Companies
It can be said that during the operation of all ga companies, the impact of the diversification strategy on the performance of ga companies is uniformly divided into two parts: changes in the operating model and shifts in strategic planning. From the evolution of these two parts, effects gradually erge, driving the improvent of company performance. The impact brought by the diversification strategy is multifaceted. This paper analyzes and researches the impact of the diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Changes in the Operating Model
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is extensive, which is an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully undertakes the developnt and publishing of mobile gas and web gas. In recent developnts, by keeping up with contemporary technology and continuously innovating, they have expanded the market to include film and ani, and they are shaping a market cultural industry chain that belongs to Sanqi Mutual Entertainnt Ga Company in fields like music, VR technology, and various live broadcasts and pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company's journey was not smooth in its early developnt. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise that initially did not involve the operation of entertainnt industries like gas in its industrial chain, constantly facing the risk of being swallowed up by the market. However, through the steady developnt of a singular industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet, with poor operations and market contractions in the later stages, Sanqi Mutual Entertainnt ultimately could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was an acquisition in na, for Sanqi Mutual Entertainnt, it marked a developntal opportunity worth grasping. The two companies completed an asset restructuring of various industries through mutual cooperation. Notably, the strategy continuously operated by Sanqi Mutual Entertainnt began to show initial signs of success at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company to its current form, encompassing the business scope of the cultural creative industry alongside the auto parts shareholding company.
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