(Anti-theft, to be published 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 dissemination thods of gas are no longer confined to rigid promotional models, 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 to keep pace with the rapid developnt of the era. The diversification strategy precisely ets the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred model for corporate developnt, is also applicable to ga companies. This paper explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt
The diversification strategy is a market strategy adopted by companies during operations to occupy and expand new markets further, and it is also a strategic plan for companies to avoid risks encountered in operating a single business by entering new business fields with preparation and focus. Applying the diversification strategy to ga companies can effectively improve company performance and bring about a qualitative change in the developnt of ga companies.
1. The macro background of the diversification strategy
Entering 2021, under the strong control of the pandemic by the nation, people's lives have returned to normal, and the economy and culture show a great recovery trend. On April 30, 2021, data released by the National Bureau of Statistics showed that the developnt of the cultural industry nationwide has basically returned to the pre-pandemic level[1]. This is extrely favorable news for the ga industry, which occupies a large proportion of the cultural industry. Although the advent of the pandemic did not significantly affect the ga industry, the inability to conduct offline activities always affected the performance of ga companies. With the revival of the cultural industry, for most ga companies, this ans that the great 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 the current stabilization of the pandemic, the nation has promulgated relevant policies in finance, systems, and other aspects 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. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic control period. However, due to various enterprises trying to enter the online market, the competitive environnt within the cultural industry is extrely fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society, but in this short span of two years, many cultural industries successfully transford. Most of these enterprises accelerated their transformation and upgrading relying on a diversification strategy model, and during the pandemic control period, when residents' consumption levels improved significantly, they also reaped substantial benefits, acquiring more diverse developnt models and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic control period is worth emulating by most ga companies[3].
2. Brief analysis and classification of the diversification strategy
(1) Brief analysis of the diversification strategy
The diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model has been involved in managent policies and guidelines in multiple countries, to the point where every enterprise, big or small, is seeking a foothold following the developnt model of a diversification strategy[4].
(2) Classification and aning of diversification strategies
Diversification strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from the diversification strategy have various 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, based on their developnt status, vertically derive and infiltrate the product industry chain into other market fields to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the existing production range, and the whole process is realized through the transformation of existing technology. Overall diversification emphasizes the expansion of business range changes, where enterprises need to expand their business range by contacting raw materials, technology, and market factors related to their products[5].
3. The impact of diversification strategy on the performance of ga companies
In the operation process of all ga companies, the influence of diversification strategies on their performance can be uniformly divided into two parts: changes in operational models and shifts in strategic planning. The effects gradually generated from these two parts drive the company's performance improvent. The impact of diversification strategy is multifaceted, and this paper will analyze the effect of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Changes in operational models
At present, the primary operation range of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves interactive entertainnt operations, but Sanqi Mutual Entertainnt Ga Company is also fully responsible for the developnt and distribution of mobile gas and web gas. Moreover, in its recent developnt, it continuously innovates following the progress of this era, expanding the market layout to film and animation in the secondary dinsion, and creating a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company within music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt road was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, which initially did not involve the operation of ga and other entertainnt industries in its industrial chain and was always at risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011. However, with the subsequent poor operations and market tightening, 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., and although it was acquired nominally, for Sanqi Mutual Entertainnt, it was an opportunity worth seizing for developnt. The two companies completed various industry asset restructurings through multi-party collaboration. It is worth ntioning that the expansion strategy, which Sanqi Mutual Entertainnt had always operated, already showed potential at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main industries listed company of advanced manufacturing and modern cultural creative coexisting, corresponding to the changes in the company's operational strategy. The previous scope of business covered by the cultural and creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd.'s previous business covered by the cultural and creative industry.
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