(Anti-theft, will be sent in due ti.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public, the way of ga distribution is no longer confined to rigid promotional models, and the influence of gas is gradually expanding to all aspects of life. Corresponding ga companies also need to continuously integrate resources, innovate, iterate, and improve performance in line with the rapid developnt of the tis. A diversification strategy perfectly ets the planning needs and developnt goals within the ga industry, under the background of economic globalization, the diversification strategy as the preferred mode of developnt for enterprises is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy approach adopted by enterprises in operation to conquer and explore new markets more effectively, and also to avoid risks encountered in the operation of a single business, adopting strategic planning to enter new business fields with targeting and preparation. Applying diversification strategy practically to ga companies can effectively improve company performance, bringing the developnt of ga companies from quantity change to quality change.
1. Macro background of diversification strategy
Entering 2021, under the strong control of the pandemic by the state, people's lives are back on track, and the economy and culture are displaying a promising trend of revival and prosperity. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is very favorable news for the ga industry, which accounts for a significant proportion of the cultural industry. Although the arrival of the pandemic has not greatly impacted the ga industry, the inability to conduct offline activities has always affected ga companies' performance. The recovery of the cultural industry ans significant developnt and prosperity can drive more ga companies to embark on a pathway of sustained developnt[2].
From last year's pandemic outbreak to the current pandemic stabilization, the state has promulgated relevant policies to support the developnt of the cultural industry from multiple perspectives such as fiscal, institutional, and financial. Although the pandemic blocked people's travel footsteps, it couldn't control the speed of online network dissemination. The ergence of more new dia has driven the developnt of the cultural industry during the pandemic prevention period. But since many enterprises want to squeeze into the online market, leading to fierce competition in the cultural industry, many traditional offline enterprises couldn't withstand the impact of the pandemic and were eliminated by society. However, within these short two years, many successfully transford cultural industries erged. These enterprises mostly relied on diversification strategy mode to accelerate transformation and upgrading, achieving fruitful results during the pandemic prevention period when residents' consumption levels significantly increased, acquiring more diversified developnt models and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning for most ga companies[3].
2. Simplified analysis and classification of diversification strategy
(1) Simplified analysis of diversification strategy
The diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his writing, "What is Corporate Strategy," he ntioned the classification of diversification strategy. This globally impacting strategic model is involved in the managent policy in many countries, so today, every small and large enterprise seeks a place according to the developnt mode 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 overall diversification. The four different modes derived from the diversification strategy have different anings. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et new user needs, thus driving market consumption; Vertical integration is when enterprises derive vertically according to their developnt situation, utilizing the product industry chain to penetrate other market fields seeking new consur targets; Concentric diversification focuses more on the innovation of original technologies, needing to produce new products within the original production range, realizing through the transformation of existing technology; Overall diversification focuses more on expanding the scope of operation changes, enterprises need to connect with factors related to their products such as raw materials, technology, and market to expand the scope of operation[5].
3. 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 strategy on ga company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. From these two parts of reform gradually generating effects driving the company's performance improvent, the impact brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on ga company performance[6].
(1) Changes in the operation model
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also single-handedly manages the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnt, it continuously innovates by keeping pace with the era of technology, expanding the market to layout film and animations in ACG, also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the early developnt path was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small-scale enterprise, initially the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, always facing the risk of being absorbed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but accompanying later poor operation 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. Although nominally acquired, for Sanqi Mutual Entertainnt, this is a developnt opportunity worth grasping. Through multi-party collaboration, the two companies completed asset restructuring in various industries, notably, the exhibiting strategies Sanqi Mutual Entertainnt has been operating is beginning to show prominence. Sanqi Mutual Entertainnt company transford from a single modern cultural creative company before the acquisition to a dual-listed company with parallel advanced manufacturing and modern cultural creativity. Corresponding to Sanqi Mutual Entertainnt, the company operation strategy is also experiencing changes, the scope of business covered by the original cultural creative industry is evolving. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. covered the scope of business of the original cultural creative industry.
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