(Anti-theft, to be posted later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to everyone. The way gas are spread is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and update, and improve performance as the tis develop rapidly. Diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of corporate developnt, is equally applicable to gaming companies. This article explains the impact of diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy employed by enterprises in the process of operation to capture more new markets and develop new markets. It is also a strategic planning used by enterprises to enter new business fields with targeted and prepared asures to avoid risks encountered in operating a single business. Applying diversification strategy practically in gaming companies can effectively improve company performance, bringing about a process from quantitative change to qualitative change in the developnt of gaming companies.
1. The macro background of diversification strategy
As we step into 2021, with the effective control of the pandemic by the state, people's lives are back on track, and the economic and cultural aspects are showing a great trend of 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 pre-pandemic levels[1]. This is particularly good news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. The recovery of the cultural industry ans that the great developnt and prosperity of the cultural industry can drive more gaming companies to embark on a path of sustainable developnt for most gaming companies[2].
From the outbreak of the pandemic last year to the current stability of the epidemic, the state has introduced relevant policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period, but companies are eager to break into the online market, making the competition environnt within the cultural industry very fierce. Many traditional offline companies have been eliminated by society due to the impact of the pandemic at this ti. However, in just these two years, many cultural industries have successfully transford. Most of these companies rely on the diversification strategy mode to accelerate transformation and upgrading, gaining diverse developnt models and funding inco channels during the pandemic prevention period when residents' consumption levels have significantly improved. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning from for most gaming companies[3].
2. A brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This strategy model, which affects the world, is involved in the managent policy of many countries, so that today every enterprise, large or small, seeks a place in the developnt mode of diversification strategy[4].
(2) Classification of diversification strategy and its aning
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The derived four modes of diversification strategy have different anings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et the new needs of users, thereby driving market consumption; vertical integration is the enterprise's vertical derivation based on its developnt situation, using the product industry chain to penetrate other market fields to seek new consurs; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production range, achieving the entire process through the transformation of existing technology; conglorate diversification focuses more on expanding the scope of business changes. Enterprises need to contact products, original materials, technologies, and market factors related to themselves to expand their business scope[5].
3. The impact of diversification strategy on the performance of gaming companies
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on company performance is uniformly divided into two parts: changes in operating modes and shifts in strategic planning. The effects generated from these two changes gradually drive the improvent of company performance. The impact of diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and research the impact of diversification strategy on gaming company performance[6].
(1) Changes in operating modes
At present, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also the advantage brought by the diversification strategy. In addition to the operation of interactive entertainnt, the company also handles the research and developnt, and distribution of mobile and web gas under the Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years, the company has kept pace with technological advancents and continuously innovated, expanding its market to the layout of film and ani, and also building a cultural industry chain that belongs to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcasting and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, its industry chain did not involve the operation of gas and other entertainnt industries, facing the risk of being annexed by the market at any ti. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Nevertheless, with the poor later operation and market squeeze, Sanqi Mutual Entertainnt ultimately did 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 acquired in na, it was an opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed the restructuring of various industry assets through multi-party cooperation. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt has been implenting has begun to show its strength. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before the acquisition into a dual-listed company with advanced production manufacturing and modern cultural creativity running concurrently. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainnt has also undergone changes in the business scope covered by the original cultural and creative industry. In 2014 Wuhu Shunrong Auto Parts Co., Ltd.'s cultural and creative industry business scope was covered by the original range.
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