(For anti-theft purposes, content will be posted later.) Abstract: With technological advancents and the coverage model of intelligent networks, the rise of the gaming industry in recent years is apparent to the public. The mode of ga dissemination is no longer restricted to rigid promotional thods, and the influence of gas has gradually expanded to all aspects of life, necessitating ga companies to continually integrate resources, innovate, and improve performance to keep pace with rapid developnt. A diversification strategy perfectly ets the planning needs and developnt goals within the gaming industry. Amidst economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. This paper illustrates the impact of diversification strategy on ga company performance, using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool employed by enterprises during operation to capture new markets and expand existing ones, and to avoid risks encountered when operating a single business. It involves strategic planning to strategically and proactively enter new business fields. Applying diversification strategy to ga companies can effectively enhance company performance, bringing a transformative process from quantitative to qualitative changes in ga company developnt.
1. Macroscopic Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives returned to normal, presenting an excellent recovery trend in economic and cultural spheres. On April 30, 2021, according to the National Bureau of Statistics, cultural industry developnt nationwide has basically returned to pre-pandemic levels [1]. This is particularly favorable for the gaming sector, which holds a significant share in the cultural industry. Although the pandemic's arrival did not greatly impact the gaming sector, the inability to conduct offline activities constantly affected ga company performance. The cultural industry's warming for most ga companies signals that significant developnt and prosperity within the cultural sector can promote and foster more ga companies for sustained developnt [2].
From last year's pandemic outbreak to the current pandemic stabilization, the country has instituted policies from financial, institutional, and financial aspects to support cultural industry developnt. The pandemic may have stopped people from traveling, but it has not slowed down online network dissemination speed. More new dia have erged during the pandemic control period, driving cultural industry developnt. However, as each company strives to enter the online market, the competitive environnt within the cultural industry is quite intense. Nurous traditional offline enterprises succumbed to pandemic impact and were eliminated, but within these short two years, many successful transitioning cultural industries erged. These enterprises mostly relied on diversification strategy models to accelerate transformation and upgrades. During the pandemic control period, when resident consumption levels notably increased, they also reaped abundant benefits, acquiring diversified developnt models and inco channels. The transformation Sanqi Mutual Entertainnt underwent during the pandemic control 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 pioneer of strategic managent, Igor Ansoff. In his work "What is Business Strategy," he categorizes diversification strategy, a world-influencing strategy model that is included in managent policy guidelines of many countries, to the extent that today, enterprises of all sizes are seeking a place following diversification strategy developnt models [4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four distinct modes derived from diversification strategy have different anings. Horizontal diversification refers to enterprises utilizing original market conditions to produce new products eting users' needs, thereby driving market consumption. Vertical integration is enterprises developing vertically based on their situation, using product industry chains to penetrate other market fields and seek new consur groups. Concentric diversification focuses more on innovation using existing technology, requiring production of new products within existing production scope, achieved through the tamorphosis of existing technology. Conglorate diversification emphasizes expansion of operational scope changes, requiring enterprises to connect factors related to their products, such as raw materials, technology, and markets, to expand operational scope [5].
3. Diversification Strategy Impact on Ga Company Performance
It can be said that in all ga company operations, diversification strategy impacts ga company performance, uniformly divided into two parts: changes in operational mode and shifts in strategic planning. From these two parts, the transformation gradually generates effects enhancing company performance. The impacts of diversification strategy are multifaceted. This paper will analyze and research the impact of diversification strategy on ga company performance, using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in Operational Mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operational scope is extensive, relying on advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operation but also solely holds the developnt and distribution of mobile gas and web gas. In recent developnt, it keeps pace with technological advances and continually innovates, expanding market layout to include film and ani sectors. It also shapes Sanqi Mutual Entertainnt Ga Company's market cultural industry chain within music, VR technology, and various live-streaming and pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not always have a smooth developntal path initially. Its predecessor was a small enterprise, with its industry chain not involving ga and entertainnt sectors initially, always at risk of being swallowed by the market. Relying on steady developnt of single industry, Sanqi Mutual Entertainnt listed in 2011, but due to later poor operations and market contraction, it eventually could not escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although acquired in na, for Sanqi Mutual Entertainnt, this was a worthwhile developnt opportunity. Through multi-faceted cooperation, the two companies completed various industry asset restructuring. Notably, the operational strategy that Sanqi Mutual Entertainnt has been operating revealed its prowess at this point. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before the acquisition to a dual-main listed company with advanced production manufacturing and modern cultural creativity parallel, corresponding to changes in Sanqi Mutual Entertainnt Company's operational strategy. Previously covered business scopes by cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially cultural creative industry covered business scopes.
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