(Anti-theft, to be released later.) Abstract: With the advancent of technology and the pervasive model of smart networks, the rise of the gaming industry in recent years is evident to the public. The thods of ga dissemination are no longer limited to rigid promotional models, and the influence of gas has gradually expanded into various aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, and enhance performance to keep pace with the rapid developnt of the era. A diversification strategy perfectly ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is equally applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of the diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy ans that companies adopt during operations to capture more new markets and explore new markets. It is also a strategic plan that companies use to avoid risks encountered during the operation of a single business and to enter new business fields in a targeted and prepared manner. Implenting a diversification strategy in gaming companies can effectively enhance company performance, bringing a transition from quantitative to qualitative change for the developnt of gaming companies.
1. The Macro Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural recovery is in a great situation. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry had basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the pandemic did not seriously affect the gaming industry, offline activities...
From the outbreak of the pandemic last year to the current stabilization of the pandemic situation, the state has issued relevant policies from financial, institutional, and financial perspectives to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of online networks. Increasingly more new dia have erged, driving the developnt of the cultural industry during pandemic prevention and control, but as all companies strive to enter the online market, the competitive environnt within the cultural industry has beco very fierce. Many traditional offline companies could not withstand the impact of the pandemic and have been eliminated by society. However, in this short period of two years, many cultural industry transformations have succeeded, and most of these enterprises have accelerated their transformation and upgrade through the diversification strategy model. During the pandemic prevention and control period, with a significant improvent in residents' consumption levels, they have also reaped substantial rewards, gaining more diverse developnt models and funding channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention and control period is worthy of reference for most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in managent policies in many countries, so much so that today every enterprise, big or small, is seeking a place in accordance with the developnt model of diversification strategy [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different mode anings derived from the diversification strategy also differ. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that et new user demands, thereby driving market consumption; vertical integration is when companies derive vertically based on their developnt condition and penetrate other market fields using the product industry chain to seek new consurs; concentric diversification focuses more on innovation of existing technology and requires the production of new products within the original production range, realizing the entire process through the transformation of existing technology; conglorate diversification emphasizes expanding the scope of operations, where companies need to connect relevant raw materials, technology, and market factors related to their products to expand business scope [5].
3. The Impact of Diversification Strategy on the Performance of Gaming Companies
In the operational process of all gaming companies, the impact of a diversification strategy on gaming company performance is generally divided into changes in operational mode and shifts in strategic planning. The gradual ergence of effects from these two reform aspects leads to performance improvent. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of a diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in Operational Mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is an advantage brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also covers the R&D and publication of mobile and web gas. In recent developnts, the company keeps pace with era technology and continually innovates, expanding the market to include film and television layout and ani secondary elents. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in pan-entertainnt businesses like music and VR technology, and various live broadcasts.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the early developnt was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainnt did not involve gaming or entertainnt industry operations, always risking being taken over by the market. However, thanks to the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but, with subsequent unappealing operations and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite the acquisition in na, it presented Sanqi Mutual Entertainnt with a developnt opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is noteworthy that the strategy operated by Sanqi Mutual Entertainnt had already begun to show prominence at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to a dual-main-business listed company parallelly operating advanced production manufacturing and modern cultural creativity. The corresponding operational strategy of Sanqi Mutual Entertainnt Company was also undergoing changes; the business scope covered by the original cultural creative industry changed. For Wuhu Shunrong Auto Parts Co., Ltd., the business scope covered by the original cultural creative industry in 2014.
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