(Anti-theft, will be released later.) Abstract: With the progress of technology and the coverage model of the intelligence network, the rise of the ga industry in recent years is evident to the citizens. The dissemination of gas is no longer confined to rigid promotional thods, and the influence of gas has gradually expanded to all 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 a preferred mode for enterprise developnt, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of a diversification strategy on the performance of ga companies.
Keywords: Diversification Strategy; Ga Companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic tool adopted by enterprises during the operation process to occupy and expand new markets. It also serves as a strategic plan for enterprises to avoid the risks encountered in operating a single business and to enter new business fields with purpose and preparation. The practical application of a diversification strategy in ga companies can effectively improve company performance, bringing about a transformation from quantitative to qualitative change in the developnt of ga companies.
1. Macro Background of the Diversification Strategy
In 2021, with the effective control of the pandemic by the state, people’s lives returned to normal, and the economy and culture also showed a robust recovery. 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 the pre-pandemic level [1]. This is very beneficial news for the ga industry, which holds a significant share in the cultural industry. Although the pandemic did not significantly impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming of the cultural industry ans large-scale developnt and prosperity of the cultural industry for most ga companies, which can promote more ga companies to embark on the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization of the pandemic, the state has promulgated relevant policies to support the developnt of the cultural industry from various aspects such as finance, systems, and finance. Although the pandemic has restrained people’s travel, it cannot control the speed of online network dissemination. The ergence of more and more new dia has promoted the developnt of the cultural industry during the pandemic prevention and control period. However, due to the desire of various enterprises to enter the online market, the competitive environnt within the cultural industry has beco very intense. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But in just two years, nurous cultural industries successfully transford, largely relying on the diversification strategy model to accelerate transformation and upgrading. They also gained abundant returns in the pandemic prevention and control period when residents’ consumption levels significantly improved, obtaining more diversified developnt modes and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention and 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 father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This global strategic model is involved in the managent policy guidelines of many countries, so today, every enterprise, large or small, seeks a place according to the developnt model of diversification strategy [4].
(2) Classification of Diversification Strategy and Its aning
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 have different anings. Horizontal diversification refers to the production of new products that can et the new demands of users utilizing the initial conditions provided by the market, thereby driving market consumption. Vertical integration is when an enterprise derives vertically based on its developnt situation, infiltrating other market fields through the product industry chain to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, achieving the transformation through the tamorphosis of existing technology; conglorate diversification emphasizes expanding the business scope, requiring the enterprise to connect with factors related to its products, such as raw materials, technology, and market, to expand its business scope [5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operation process of all ga companies, the effect of a diversification strategy on ga company performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. The gradual ergence of effects from these two changes drives the improvent of company performance. The impact brought by a diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in Operation Mode
Currently, the primary operation scope of Sanqi Mutual Entertainnt Ga Company is extensive, which is also an advantage brought by the diversification strategy. The company’s business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also controls the R&D and release of mobile gas and web gas. In recent years, following the technology of the tis and continuously innovating, the market has extended to the layout of film and ani ACG, and it is shaping the market cultural industry chain of Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcast and other pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was founded. The initial developnt path was not smooth, as the predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and its industry chain initially did not involve the operation of gas and other entertainnt industries, always facing the risk of market annexation. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with poor operation and market contraction in the later stages, Sanqi Mutual Entertainnt still 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 a 60% equity stake. Although nominally acquired, this was an opportunity for developnt that Sanqi Mutual Entertainnt could seize. Through multilateral collaborations, the two companies completed various industry asset restructurings. It is worth noting that the operation strategy that Sanqi Mutual Entertainnt had been operating was already beginning to show its edge by this ti. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before being acquired to a dual-major listed company now alongside advanced production manufacturing and modern cultural creativity simultaneously. Correspondingly, Sanqi Mutual Entertainnt’s company operation strategy was also undergoing changes, covering the business scope of the original cultural creative industries. In 2014 Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of the original cultural creative industry.
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