(Anti-theft, will be sent later.) Abstract: With the advancent of technology and the coverage model of smart networks, the rise of the gaming industry in recent years is evident to everyone. The dissemination of gas is no longer restricted to rigid propaganda modes, and the influence of gas is gradually expanding into various aspects of life. Correspondingly, gaming 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 perfectly caters to the planning needs and developnt goals within the gaming industry. In the context of economic globalization, a diversification strategy, as the preferred model for corporate developnt, is also applicable to gaming 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
A diversification strategy is a market strategic asure adopted by enterprises during their operations to capture more new markets and develop new markets. It is also a strategic plan for enterprises to avoid risks encountered in operating a single business by entering new business fields in a targeted and prepared manner. Applying a diversification strategy in gaming companies can effectively enhance company performance and bring about a process of transformation from quantitative change to qualitative change for the developnt of gaming companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the governnt's effective control of the pandemic, 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 relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to the level before the pandemic [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities always impacted the performance of gaming companies. The revival of the cultural industry ans, for most gaming companies, 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 the outbreak of the pandemic last year to the current stabilization of the pandemic, the governnt has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. Although the pandemic has stopped people from traveling, 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, due to the fact that all enterprises want to squeeze into the online market, the competitive environnt among cultural industries is very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society at this ti. However, in the short span of two years, many cultural industries successfully transford and erged. Most of these enterprises relied on the diversification strategy model to accelerate transformation and upgrading, and they also gained substantial rewards during the pandemic prevention and control period when consur levels significantly increased, obtaining more diversified developnt models and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth learning from by most gaming 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 influential strategic model is included in the managent policy of many countries, so much so that today every large and small enterprise is seeking a place based on the developnt model of diversification strategy [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The derived four different modes from the diversification strategy also have different anings. Horizontal diversification refers to the production of new products that et new user needs by utilizing the original conditions provided by the market, thereby driving market consumption. Vertical integration is the enterprise's vertical derivation based on its developnt situation, using the product industry chain to penetrate other market fields 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, and the entire process is achieved through the transformation of existing technology. Overall diversification focuses more on the expansion of the business scope, where enterprises need to expand the business scope by contacting raw materials and technology related to their products and market factors [5].
3. Impact of Diversification Strategy on Gaming Company Performance
It can be said that in the operations of all gaming companies, the impact of the diversification strategy on gaming company performance is uniformly divided into two parts: the change of operation mode and the transfer of strategic planning. Effects gradually erge from these two changes to drive the improvent of company performance. The impact brought by the 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 company performance [6].
(1) Change of Operation Mode
Currently, the main operation fields of Sanqi Mutual Entertainnt Ga Company are very extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also fully covers the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years, it has constantly innovated following the tis and technology, expanding the market to include layouts in film, ani, and second-dinsional culture, and also shaping the unique market cultural industry chain belonging to 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 established. However, the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gaming and other entertainnt industries, and there was always the risk of being annexed by the market. But with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, coupled with subsequent poor operations and market tightening, Sanqi Mutual Entertainnt eventually could 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 nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the tentative strategy always operated by Sanqi Mutual Entertainnt was beginning to show its prowess at this ti. Sanqi Mutual Entertainnt Company transford from being a single modern cultural and creative company before the acquisition into a dual-main business listed company integrating advanced production manufacturing and modern cultural creativity. Correspondingly, the operational strategy of Sanqi Mutual Entertainnt Company also underwent changes from what was previously covered by the business scope of the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. covered the business scope of the forr cultural creative industry.
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