(Anti-theft, will be released later.) Abstract: With the progress of technology and the coverage model of smart networks, the rise of the ga industry in recent years is evident to the public. The dissemination thod of gas is no longer confined to stereotypical promotional modes; the influence of gas has also gradually extended to all aspects of life. Correspondingly, ga companies need to continually integrate resources with the rapid developnt of the era, innovate, and iterate to improve performance. Diversification strategy aptly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as the preferred model for corporate developnt, is equally 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 thod employed by enterprises during operations to capture more new markets and explore them. It is also a strategic plan for enterprises to avoid risks encountered in running a single business by entering new business fields selectively and preparedly. Applying the diversification strategy practically to ga companies can effectively improve company performance and bring a transformation from quantitative to qualitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
As of 2021, with the governnt's effective control over the pandemic, people's lives have returned to normal, and economic and cultural scenes show a promising recovery trend. On April 30, 2021, data published by the National Bureau of Statistics indicates that the developnt of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is very favorable news for the ga industry, which occupies a significant portion of the cultural industry. Although the advent of the pandemic has not severely impacted the ga industry, the inability to conduct offline activities has affected ga companies' performance. The cultural industry's resurgence ans for most ga companies that the major developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on a path of sustainable developnt[2].
From the outbreak of the pandemic last year to its current stabilization, the state has issued policies from fiscal, institutional, and financial aspects to support the developnt of the cultural industry. Although the pandemic has halted people's movent, it cannot control the speed of online network dissemination. The ergence of more new dia has driven the developnt of the cultural industry during pandemic prevention and control. However, the competition environnt within the cultural industry is intense as each enterprise strives to enter the online market. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, nurous successful cultural industry transitions have erged over these two years, largely relying on diversification strategy models to accelerate transformation and upgrading, significantly benefiting during the pandemic prevention period as well, gaining more diversified developnt modes and fund inco channels. For example, the transformation Sanqi Mutual Entertainnt Company made during the pandemic prevention period is worth learning from for 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 work "Corporate Strategy," he discussed the classification of diversification strategy. This world-impacting strategic model is involved in policy guidelines in multiple countries, leading every large and small enterprise to seek a place according to the diversification strategy developnt model today[4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different models derived from diversification strategy have distinct anings. Horizontal diversification refers to enterprises utilizing market-provided original conditions to produce new products eting new user demands, thereby driving market consumption; vertical integration is the vertical derivation based on enterprise's developnt, utilizing the product supply chain to penetrate other market areas, seeking new consurs; concentric diversification focuses more on the innovation of existing technology, requiring production of new products within the existing production scope, achieving transformation through existing technology; overall diversification emphasizes extending business scope changes, requiring enterprises to connect related raw materials, technology, and market factors of their products to expand the business scope[5].
3. The Impact of Diversification Strategy on Ga Company Performance
In the operation process of all ga companies, the impact of diversification strategy on ga company performance is classified into two parts: changes in operation mode and transfer of strategic planning. The effects gradually erge from the changes in these two parts, boosting the company's performance. The impact of 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 a case study[6].
(1) Changes in Operation Mode
Currently, the main operation range of Sanqi Mutual Entertainnt Ga Company is very broad, thanks to the advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operations but also fully handles the developnt and distribution of mobile gas and web gas. Moreover, in recent years, it has continuously innovated following technological advancents, expanding the market layout into film and animation, creating its market cultural industry chain in music, VR technology, and various live streaming and pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth path in early developnt. Its predecessor was a small enterprise, initially not involving ga and entertainnt industry operations in its industrial chain, constantly facing the risk of being swallowed by the market. Yet, relying on the steady developnt of single industry, Sanqi Mutual Entertainnt Company went public in 2011, but later due to poor operation and market contraction, Sanqi Mutual Entertainnt 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. Though nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing for developnt. The two companies completed various industry asset restructuring through multiple collaborations. Notably, Sanqi Mutual Entertainnt Company's strategy has already shown promise at this ti, transforming from a single modern cultural creative company before the acquisition to a dual main business listed company alongside advanced production manufacturing and modern cultural creativity. The company's operating strategy correspondingly changed, covering the business scope of the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of the original cultural creative industry.
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