(Anti-theft, to be released later.) 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 the public. The distribution thod of gas is 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 to improve performance in line with the rapid developnt of the tis. Diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy as the preferred model for enterprise developnt is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans adopted by enterprises in the operation process to occupy new markets and expand into new markets more extensively. It is also a strategic planning approach used to avoid the risks encountered in operating a single business and to enter new business fields in a targeted and prepared manner. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a process of change from quantity to quality in the developnt of gaming companies.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic culture also shows a promising recovery trend. On April 30, 2021, data released by the National Bureau of Statistics indicated that the developnt of the national cultural industry had basically returned to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which occupies a large proportion in the cultural industry. Although the arrival of the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. With the rebound of the cultural industry, for most gaming companies, this implies that the great developnt and prosperity of the cultural industry can promote more gaming companies to embark on a path of sustainable developnt [2].
From last year's outbreak of the pandemic to its current stabilization, the state has introduced relevant policies from financial, institutional, and financial aspects to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention and control period. However, as enterprises all want to enter the online market, the competitive environnt among cultural industries is very fierce. Many traditional offline enterprises have been eliminated by society under the influence of the pandemic. Yet, in these short two years, many cultural industries that have successfully transford have erged. These enterprises mostly rely on diversification strategy models to accelerate transformation and upgrading, and during the pandemic prevention and control period, when residents' consumption levels have significantly increased, they have also harvested rich rewards, gaining more diversified developnt models and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic control period is worth learning from for most gaming 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 strategies. This world-influencing strategic model is involved in the managent guideline policies of many countries, so much so that today every big and small enterprise is seeking a place according to the developnt model of diversification strategy [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 model anings derived from diversification strategy are also different. Horizontal diversification refers to producing new products that can et users' new demands using the original conditions provided by the market to drive market consumption. Vertical integration is when an enterprise, based on its developnt situation, vertically derives and uses the product industry chain to penetrate other market fields to seek new consurs. Concentric diversification focuses more on innovation on existing technology, requiring the production of new products within the existing production range, with the entire process achieving transformation through existing technology. Conglorate diversification focuses more on extending the scope of operation. Enterprises need to expand their business scope by connecting with factors such as raw materials, technology, and markets related to their products [5].
3. The Impact of Diversification Strategy on Gaming Companies' Performance
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on gaming companies' performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. These two parts of the reform gradually produce effects that drive the improvent of company performance. The impact of diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on gaming companies' performance [6].
(1) Change in Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very broad, relying on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also covers the research and publishing of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years of developnt, it has continuously innovated by closely following the technology of the tis, expanding the market to layout film and animation ACG, as well as shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live streaming and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise. At first, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of gas and other entertainnt industries, constantly at risk of being swallowed up by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011. Still, accompanying poor operation and market tightening in the later stage, Sanqi Mutual Entertainnt 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 it was officially acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. The two companies completed the asset restructuring of various industries under multi-party cooperation. It's worth ntioning that the strategic plan operated by Sanqi Mutual Entertainnt at this ti was already showing its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to the current dual-main business listed company of advanced production manufacturing and modern cultural creativity. Correspondingly, the operational strategy of Sanqi Mutual Entertainnt also changed, and the business scope previously covered by the cultural creative industry remained as 2014 Wuhu Shunrong Auto Parts Co., Ltd., initially covered by the cultural creative industry.
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