(Anti-theft, to be released in due course.) Abstract: With technological advancents and the coverage of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The mode of spreading gas is no longer confined to rigid promotional thods, and the influence of gas is gradually expanding into all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate and update in this era of rapid developnt, to improve performance. A diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, a diversification strategy, as the preferred model for corporate developnt, is also applicable to ga companies. This article explains the impact of diversification strategies on the performance of ga companies using the example of Sanqi Mutual Entertainnt Company.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategic asure that enterprises adopt in the process of operation to occupy and explore new markets more effectively. It is also a strategic plan for companies to avoid the risks encountered in operating a single business and to enter new business areas in a targeted and prepared manner. Applying a diversification strategy effectively in a ga company can significantly improve the company's performance, bringing about a transformation from quantitative change to qualitative change in the company's developnt.
1. Macroscopic Background of Diversification Strategy
Stepping into 2021, with the effective control of the epidemic by the state, people's lives have returned to normal, and the economy and culture are showing a great trend of recovery. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the overall developnt of the cultural industry in the country had basically returned to the level before the epidemic[1]. This is very favorable news for the gaming industry, which occupies a large portion of the cultural industry. Although the epidemic did not have a major impact on the gaming industry, the inability to hold offline activities always affects the performance of ga companies. The recovery of the cultural industry ans the great developnt and prosperity of the industry, which can promote more ga companies onto the path of sustainable developnt for most ga companies[2].
From the outbreak of the epidemic last year to the current stability, the state has issued relevant policies from several aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the epidemic hindered people's travel, it could not control the speed of online network transmission. More and more new dia erged, driving the developnt of the cultural industry during the epidemic prevention and control period. However, since each company wants to squeeze into the online market, the competitive environnt within the cultural industry has beco intense. Many traditional offline enterprises could not withstand the epidemic's impact and were eliminated by society. But during these short two years, many successfully transford cultural industries have erged, and most of these enterprises rely on the diversification strategy model to accelerate transformation and upgrading. They have gained rich benefits during the epidemic prevention and control period when the consumption levels of residents increased significantly, obtaining more diversified developnt models and funding inco channels, for example, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention and control period is worth emulating by most ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of 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 the managent guidelines and policies of many countries, so much so that today, every company, big or small, seeks a place according to the developnt model of a diversification strategy[4].
(b) Classification and aning of Diversification Strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four distinct modes derived from the diversification strategy each 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, thus driving market consumption. Vertical integration is when an enterprise longitudinally derives according to its developnt situation, using the product industry chain to penetrate other market areas to seek new consur targets. Concentric diversification focuses more on the innovation of existing technologies, needing the production of new products within the original production range. The entire process is achieved through the transformation of existing technologies. Conglorate diversification emphasizes the expansion of the operational scope changes, requiring enterprises to consider factors like raw materials, technology, and markets related to their products for operational scope expansion[5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategies on ga company performance is uniformly divided into two parts: changes in the operation model and strategic planning shifts. From these two parts changes gradually produce effects that promote the company's performance improvent. The impact brought by the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of the diversification strategy on ga company performance[6].
(1) Changes in the Operation Model
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is the advantage brought by the diversification strategy. The company not only involves in the operation of interactive entertainnt, but also wholly undertakes the research, developnt, and distribution of mobile and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnts, the company constantly innovates following the era's technology, expanding the market to include film, animation, ACG culture, as well as shaping the market culture industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live streaming and other pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth path in its early developnt. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries and always faced the risk of being swallowed by the market. However, through the stable developnt of a single industry, Sanqi Mutual Entertainnt Company beca listed in 2011, but with poor later operations and market shrinkage, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was acquired nominally, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. With the cooperation of many parties, the two companies completed the asset restructuring of various industries. It's worth noting that the strategy that Sanqi Mutual Entertainnt has been operating is now beginning to show promise. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before being acquired to a dual-main listed company with both advanced manufacturing and modern cultural creativity running parallel. Correspondingly, the company's operational strategy is also changing, along with the scope of business covered by the original cultural creativity industry.
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