(To prevent theft, will distribute when the ti cos.) Abstract: Accompanied by the progress of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the nation, the mode of spreading gas is no longer confined to rigid promotional models, and the influence of gas is gradually expanding to various aspects of life, correspondingly, ga companies need to constantly integrate resources, innovate iterations, and improve performance in line with the rapid developnt of the tis, and diversification strategies precisely cater to the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy as the preferred mode of enterprise developnt also applies to gaming companies. This article explains the impact of diversification strategy on the performance of gaming companies through the example of Sanqi Mutual Entertainnt Company.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy asure adopted by enterprises in the operation process to occupy new markets and develop new markets more extensively. It is also a strategic plan adopted by enterprises to avoid risks encountered in the operation of a single business. Applying diversification strategy to gaming companies can effectively improve company performance, bringing the developnt of ga companies from quantitative changes to qualitative transformations.
1. The macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives returned to normal, and the economy and culture also showed a vibrant recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry basically returned to pre-pandemic levels [1], which is extrely favorable news for the ga industry, which occupies a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the ga industry, the inability to carry out offline activities always impacted the performance of gaming companies. Through the recovery of the cultural industry, for most gaming companies, this ans the big developnt and prosperity of the cultural industry can promote and drive more gaming companies onto the path of sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the state has promulgated relevant policies to support the developnt of the cultural industry in terms of finance, system, and finance, among others. Although the pandemic blocked people's travel, it could not control the speed of online network dissemination. An increasing number of new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, due to various enterprises wanting to enter the online market, the competitive environnt among cultural industries is extrely fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society, but during these short two years, many successfully transford cultural industries also erged, and most of these enterprises accelerated transformation and upgrades relying on the diversification strategic model. During the pandemic prevention period, when residents' consumption levels increased significantly, they also gained rich harvests, obtaining more diversified developnt models and funding channels. For example, the transformation carried out by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth emulating by most ga companies [3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This strategic model influencing the world has been involved in managent policy guidelines in multiple countries, so that today every enterprise, large or small, is seeking a place according to the diversification strategy developnt model [4].
(2) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different derived models also have different anings. Horizontal diversification refers to the enterprise utilizing the initial conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; vertical integration, then, is the enterprise according to its own developnt situation extends vertically, utilizing the product industry chain to penetrate other market fields seeking new consur objects; concentric diversification focuses more on the innovation of existing technology, needing to produce new products within the existing production scope, the whole process is realized by the tamorphosis of existing technology; overall diversification focuses more on expanding business scope changes, enterprises need to contact factors such as raw materials and technology related to their products and markets to expand the business scope [5].
3. Impact of diversification strategy on ga companies' performance
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga companies' performance is uniformly divided into two parts: changes in the operational mode and shifts in strategic planning. From these two parts of the transformation gradually generates effects that drive the improvent of company performance. The impact brought by diversification strategy is multifaceted, and this paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga companies' performance [6].
(1) Changes in operational mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also due to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also Sanqi Mutual Entertainnt Ga Company under mobile gas and web gas research and distribution also fully undertake, and in recent years' developnt, it constantly innovates in keeping up with the tis and technology, expanding the market to layout film and TV and animation secondary dinsional fields, also in music and VR technology and various live entertainnt businesses building the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
The establishnt of Sanqi Mutual Entertainnt Ga Company was in 1995, but the developnt road was not smooth in the early period, the predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the Sanqi Mutual Entertainnt's industrial chain did not involve the operation of ga and other entertainnt industries, anyti there was a risk of being swallowed by the market, but relying on the steady developnt of a single industry Sanqi Mutual Entertainnt Company was listed in 2011, but as operations deteriorated and the market contracted in the later stage, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies, through multi-faceted collaboration, completed the asset restructuring of various industries. It is worth ntioning that the operational strategy that Sanqi Mutual Entertainnt has always operated began to show its sharp edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company of advanced manufacturing and modern cultural creativity parallel. Correspondingly, Sanqi Mutual Entertainnt's company operating strategy is also undergoing changes, the initially encompassed business scope of the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially encompassed business scope of the cultural creative industry.
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