(Anti-theft, to be released later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the public. The thod of spreading gas is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate and iterate, and improve performance in line with the rapid developnt of the tis. A diversification strategy precisely ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, a diversification strategy as the preferred model for enterprise developnt is also applicable to ga companies. This article explains 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 strategic tool adopted by enterprises during operations to capture more new markets and explore new markets. It is also a strategic plan that enterprises need to avoid risks encountered while operating a single business and to enter new business fields purposefully and preparedly. Applying diversification strategy practically to ga companies can effectively improve company performance, bringing a process of change from quantity to quality in the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Entering 2021, under the effective control of the state over the pandemic, people’s lives are getting back on track, and the economy and culture are showing a good recovery trend. On April 30, 2021, according to related data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to the pre-pandemic level [1]. This is very favorable news for the ga industry, which holds a significant proportion of the cultural industry. Although the pandemic did not greatly impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming cultural industry ans that for most ga companies, the big developnt and prosperity of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization of the pandemic, the state has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, system, and finance. Although the pandemic has blocked people’s travel, it cannot control the speed of online network transmission. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention period. However, due to many companies wanting to squeeze into the online market, the competition environnt in the cultural industry is extrely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, in these short two years, many successfully transford cultural industries have erged, most of which have accelerated transformation and upgrading relying on the diversified strategic model, and during the period of significant improvent in residents’ consumption levels during pandemic prevention, they have also reaped considerable rewards, gaining more diversified developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during pandemic prevention is worth learning for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This worldwide influential strategic model is involved in the managent policies of multiple countries, so today every enterprise, large or small, is seeking a foothold according to the developnt model of diversification strategy [4].
(2) Classification and Implications of Diversification Strategy
Diversification strategy is divided into four types: Horizontal Diversification, Vertical Integration, Concentric Diversification, and Conglorate Diversification. The four different models derived from diversification strategy have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration refers to enterprises based on their developnt status, vertically deriving and using the product industry chain to penetrate other market fields to seek new consur targets; concentric diversification focuses more on innovation of existing technologies, requiring the production of new products within the original production scope, with the whole process achieved through the transformation of existing technologies; conglorate diversification focuses more on expanding factors such as expansion and market to expand the business scope [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operations of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: operational model change and strategic planning transfer. The effects gradually arise from these two parts, driving the company’s performance improvent. The impact brought by diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in the Operational Model
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which also relies on the advantages brought by diversification strategy. The company’s business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company has also wholly undertaken the research and publication of mobile gas and web gas. In recent developnt, keeping up with the tis and technology, they continue to innovate, expanding the market layout to film and animation, and also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the initial developnt road was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, always facing the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but accompanied by poor operation and market shrinkage in later stages, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing. Through mutual cooperation, the two companies completed the asset restructuring of various industries. It is worth ntioning that the strategic exploration that Sanqi Mutual Entertainnt has been operating has already shown its sharpness 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 of advanced manufacturing and modern cultural creativity operating in parallel. Correspondingly, Sanqi Mutual Entertainnt’s company operating strategy also changed, with the business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of cultural creative industries.
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