(Anti-theft, will be released in due ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to all citizens. The dissemination thod of gas is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate and iterate, and improve performance as the tis develop rapidly. A diversification strategy happens to et the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, a diversification strategy, as the preferred mode of enterprise developnt, also applies to gaming companies. This paper explains the impact of diversification strategies on gaming company performance by taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises in the operation process to occupy more new markets and explore new markets. It is also a strategic plan used by enterprises to avoid risks encountered in operating a single business and to enter new business fields with targets and preparation. Applying a diversification strategy to gaming companies can effectively improve company performance, bringing about a qualitative transformation from quantitative changes in the company’s developnt.
1. Macro Background of Diversification Strategy
Entering 2021, under the strong control of the pandemic by the state, people’s lives are back on track, and the economic culture also presents a prosperous 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 the pre-pandemic level [1]. This is extrely beneficial news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the pandemic has not caused significant impacts on the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. With the warming of the cultural industry, for most gaming companies, this ans that the great developnt and prosperity of the cultural industry can promote and drive more gaming companies to embark on the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization, the country has introduced relevant policies from multiple aspects like finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people’s travel, it cannot control the spread speed of the online network. More and more new dia appear, driving the developnt of the cultural industry during the pandemic prevention period. However, due to various companies vying to enter the online market, the competition environnt within the cultural industry is extrely fierce. Many traditional offline enterprises cannot withstand the impact of the pandemic and are eliminated by society at this ti. But in these short two years, many successfully transford cultural industries have erged. Most of these companies rely on the diversification strategy model to accelerate transformation and upgrading, and they have also harvested significant results during the pandemic prevention period when residents’ consumption levels have increased significantly, gaining more diversified developnt models and inco sources. For example, the transformation undertaken by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning from 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 father of strategic managent, Igor Ansoff, in his book "Corporate Strategy," where he ntioned the classification of diversification strategies. This globally influential strategic model is included in the managent policies of many countries, resulting in every large and small enterprise seeking a place according to the developntal model of the diversification strategy today [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 different modes derived from the diversification strategy also have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration is when enterprises derive vertically based on their developnt situation, using the product industry chain to penetrate other market areas to seek new consur objects. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production range, achieving the whole process through the transformation of existing technology. Conglorate diversification emphasizes expanding the scope of operations, where enterprises need to link raw materials, technology, markets, and other factors related to their products to expand the scope of operations [5].
3. Impact of Diversification Strategy on Gaming Company Performance
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: the change in operation mode and the shift in strategic planning. The effect gradually arises from these two parts of the transformation, driving the improvent of company performance. The impact of diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on gaming company performance [6].
(1) Change in Operation Mode
At present, the main operation range of Sanqi Mutual Entertainnt Ga Company is very wide, which relies on the advantages brought by the diversification strategy. The company’s business not only involves the operation of interactive entertainnt but also covers the research and publication of mobile gas and web gas. In recent years, keeping up with the tis and technological advancents, it has continuously innovated and extended the market to include film, ani, music, VR technology, and various live broadcasting content, shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path was not smooth in the early stages. 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, 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 with the later failure of operation and market contraction, Sanqi Mutual Entertainnt still did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was acquired in na, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed the asset restructuring of various industries through multi-party cooperation. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has been operating had already begun to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to the current dual-main business listed company, where advanced production manufacturing and modern cultural creativity go hand in hand. Correspondingly, the company’s operation strategy of Sanqi Mutual Entertainnt also underwent changes, and the business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of the cultural creative industry.
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