(Anti-theft, release later.) Summary: With the advancent of technology and the coverage of intelligent networks, the rise of the ga industry in recent years is evident to all, and the ways of spreading gas are no longer confined to rigid promotional thods. The influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and improve performance amid the rapid developnt of the era. Diversification strategy precisely caters to the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. This article explains the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises to occupy new markets and explore new markets more broadly during operations. It is also a strategic planning that enterprises use to avoid risks encountered in operating a single business by entering new business fields in a targeted and prepared manner. The practical application of diversification strategy to ga companies can effectively improve company performance, bringing a transformation process from quantitative change to qualitative change in the developnt of gaming companies.
1. The macro background of diversification strategy
Entering 2021, with the country's strong control over the pandemic, people's lives are on track, and the economy and culture are showing great signs of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels [1], which is excellent news for the gaming industry, which holds a significant share in the cultural industry. Although the pandemic did not severely impact the ga industry, the inability to conduct offline activities always affected the performance of ga companies. The warming of the cultural industry ans that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt [2].
From last year's outbreak to the current stability of the pandemic, the country has promulgated relevant policies in finance, institutions, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's outings, it cannot control the propagation speed of online networks. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, because all companies want to enter the online market, the competitive environnt in the cultural industry is extrely fierce. Many traditional offline enterprises were eliminated by society during this ti due to the impact of the pandemic. But in just two years, many cultural industries have successfully transford, and these companies mostly relied on diversification strategy models to accelerate transformation and upgrades, achieving significant results during the pandemic prevention period when resident consumption levels increased significantly, gaining more diverse developnt modes and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning from for most ga companies [3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy", he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in managent policy guidelines of many countries, so today every enterprise is vying for a position according to the developnt mode of diversification strategy [4].
(b) Classification of diversification strategy and its aning
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The anings derived from the four different modes of diversification strategy are also distinct. Horizontal diversification ans enterprises use the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration is where enterprises derive vertically based on their developnt situation, using the product industry chain to penetrate other market areas to seek new consur targets. Concentric diversification pays more attention to innovation in existing technologies and requires the production of new products within the existing production range, achieving transformation through the tamorphosis of existing technologies. Overall diversification emphasizes expanding the business scope, where enterprises need to associate relevant raw materials, technologies, and markets with their products to expand the business scope [5].
3. The impact of diversification strategy on the performance of ga companies
It can be said that in the operation process of all ga companies, the impact of diversification strategy on the performance of ga companies is uniformly divided into changes in the operation mode and strategic planning shifts. The effects gradually arise from these two parts to drive the enhancent of company performance. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in operation mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also the advantage brought by the diversification strategy. The company's business not only includes the operation of interactive entertainnt, but it also undertakes the developnt and distribution of mobile gas and web gas single-handedly. In recent developnts, it continuously innovates by keeping up with the tis and technology, expanding the market to layout films and ani subculture, also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music and VR technology as well as various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the initial developnt path was not smooth. Its predecessor was a small enterprise, and at first, Sanqi Mutual Entertainnt's industry chain did not include ga and entertainnt industry operations, constantly facing the risk of being swallowed up by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with later poor business operations and market contraction, Sanqi Mutual Entertainnt ultimately 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 an opportunity worth grasping. The two companies completed asset restructuring of various industries through multi-party cooperation. Notably, the strategy Sanqi Mutual Entertainnt has been operating began to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired into a dual-main business listed company that paralleled advanced manufacturing and modern cultural creativity. Correspondingly, changes also occurred in Sanqi Mutual Entertainnt Company's business operation strategy, within the original scope of the cultural creative industry's business covered by Wuhu Shunrong Auto Parts Co., Ltd. in 2014.
User Comments
0 comments from readers