(To be updated for anti-theft purposes.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the public. The mode of ga dissemination is no longer confined to rigid promotional thods, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies must integrate resources continuously, innovate and iterate, and improve performance to keep up with the fast-paced developnt of the tis. A diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Amidst the backdrop of economic globalization, diversification strategy serves as a pri developnt mode applicable to ga companies. This paper uses Sanqi Mutual Entertainnt Company as an example to elucidate the effect of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy thod adopted by enterprises in the course of operations to capture and develop new markets more extensively. It is also a strategic plan that enterprises utilize to avoid risks encountered during the operation of a singular business by entering new business fields purposefully and with preparation. Applying diversification strategy effectively in ga companies can significantly improve company performance, bringing about a transformation from quantitative to qualitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives have resud normalcy, presenting a promising recovery scenario for the economic and cultural aspects. On April 30, 2021, related data released by the National Bureau of Statistics indicated that the developnt of the national cultural industry had basically returned to pre-pandemic levels[1]. This is exceptionally favorable news for the gaming industry, which constitutes a significant proportion of the cultural industry. Although the outbreak of the pandemic did not noticeably impact the ga industry, the inability to conduct offline activities nonetheless affected the performance of ga companies. The warm recovery of the cultural industry signifies a great expansion and prosperity of the cultural industry, which can foster and drive many ga companies to tread the path of sustainable developnt[2].
Since the outbreak of the pandemic last year to the present stable state of the pandemic, the country has promulgated relevant policies to support the developnt of the cultural industry in aspects such as finance, institutions, and finance. While the pandemic has hindered people's movents, it could not contain the spread speed of online networks. Increasingly more new dia have erged, spurring the developnt of the cultural industry during the pandemic control period. However, the competition environnt within the cultural industry is intensely competitive due to every enterprise aspiring to penetrate the online market. Many traditional offline enterprises couldn't withstand the impacts of the pandemic and were thus eliminated by society. Yet, these short two years also witnessed the ergence of many successfully transford cultural industries that predominantly accelerated their transformation and upgrade through a diversification strategy and also reaped considerably due to the significantly improved consumption levels of residents during pandemic control periods, obtaining more diversified developnt models and inco channels. For instance, the transformation undertaken by Sanqi Mutual Entertainnt during the pandemic control period rits emulation by nurous ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the father of strategic managent, in his book "Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion," wherein he ntioned the categorization of diversification strategy. This globally influential strategic model has been involved in managent policy guidelines in multiple countries, causing every enterprise, regardless of size, to seek a foothold in accordance with the developnt model of diversification strategy[4].
(b) Classification and aning of Diversification Strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings derived from these four distinct models of diversification strategy also differ. Horizontal diversification refers to enterprises using 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 condition, penetrate into other market fields using product industry chains to seek new consumption targets; Concentric diversification places more emphasis on innovation of existing technology, requiring the production of new products within the existing production scope, achieving it through the tamorphosis of existing technology; While conglorate diversification emphasizes changes in expanding the scope of operation, requiring enterprises to connect factors related to their products such as raw materials, technology, and market, to expand their scope of operation[5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
One could argue that in the operational processes of all ga companies, the influence of diversification strategy on the performance of ga companies can be uniformly divided into two parts: the change of operation mode and the transition of strategic planning. From these two parts, the transformation gradually generates effects, propelling the performance improvent of companies. The impact brought by 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 the performance of ga companies[6].
(1) Change of Operation Mode
Currently, the primary operational scope of Sanqi Mutual Entertainnt Ga Company is exceptionally broad, deriving advantages from the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also wholly undertakes the developnt and release of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnt, the company keeps pace with the tis and technological advancents, continuously innovates, and expands the market layout into film, ani second-dinsion, as well as in music and VR technology, and various live broadcast and other pan-entertainnt businesses, forging a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
The Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt path was not smooth. The precursor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, with its industrial chain not initially involving the operation of gas and other entertainnt industries, making it susceptible to market takeover. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Nonetheless, accompanying subsequent poor managent and market constrictions, Sanqi Mutual Entertainnt eventually couldn't escape acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% equity. Though nominally acquired, it posed a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. Both companies completed the asset restructuring of various industries through multi-cooperation. It is noteworthy that the strategic exhibit that Sanqi Mutual Entertainnt had been operating was beginning to demonstrate its edge by then. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before the acquisition to a dual-main-business listed company now concurrently engaging in advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt has also undergone changes, altering the previously encompassed business scope of the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially covered the scope of the cultural creative industry.
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