(Anti-theft, release later.) Summary: With the advancent of technology and the coverage pattern of smart networks, the rise of the gaming industry in recent years is evident to the public. The spread of gas is no longer confined to rigid promotional thods, and the influence of gas is gradually extending to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, update, and improve performance as they keep pace with the rapid developnt of the tis. A diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Under the background of economic globalization, a diversification strategy as the preferred mode for enterprise developnt is equally applicable to gaming companies. This article explains the impact of diversification strategy on the performance of gaming companies, using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; gaming companies; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic approach taken by enterprises during operations to capture more new markets and expand existing ones. It is also a strategic plan that enterprises adopt to avoid risks encountered while operating a single business and to enter new business fields with targeted preparations. Applying the diversification strategy to a gaming company can effectively enhance company performance, bringing about a transition from quantitative change to qualitative change in the company's developnt.
1. Macroscopic Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the country, people's lives have returned to normal, and the economic culture is showing a major recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to the pre-pandemic level [1]. This is particularly beneficial news for the gaming industry, which occupies a significant portion of the cultural industry. Although the arrival of the pandemic did not cause significant impacts to the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. The warming up of the cultural industry ans that for most gaming companies, it can promote and drive more gaming companies to embark on the path of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stabilization of the pandemic, the country has implented relevant policies to support cultural industry developnt from multiple aspects such as finance, systems, and finance. Although the pandemic has hindered people's ability to travel, it cannot control the spreading speed of online networks. The ergence of more and more new dia has driven the developnt of the cultural industry during pandemic prevention and control periods. However, as each company wants to squeeze into the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises at this ti could not withstand the pandemic's impact and were eliminated by society, but in these short two years, many successfully transford cultural industries have erged. These enterprises mostly relied on diversification strategy models to accelerate transformation and upgrade, amassing considerable gains in diversified developnt models and revenue channels during periods of increased consur spending during pandemic prevention and control. For example, the transition made by Sanqi Mutual Entertainnt Company during pandemic prevention and control is worthy of reference by most gaming companies [3].
2. Simple Analysis and Classification of Diversification Strategy
(a) Simple Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the founding father of strategic managent. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent principles and policies of multiple countries. As a result, today every enterprise, big or small, seeks a place according to the developnt model of the diversification strategy [4].
(b) Classification and aning of Diversification Strategy
Diversification strategies are 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 using the initial conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption. Vertical integration refers to enterprises deriving vertically according to their developnt circumstances, utilizing product industry chains to penetrate into other market fields and seek new consumption targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, with the entire process achieved through the transformation of existing technology. Overall diversification emphasizes expanding the scope of business changes, requiring enterprises to link factors such as raw materials and technology related to products and markets to expand their business scope [5].
3. Impact of Diversification Strategy on Gaming Companies' Performance
It can be said that in the operations of all gaming companies, the impact of diversification strategy on gaming companies' performance is uniformly divided into two parts: changes in operational modes and shifts in strategic planning. From these two changes gradually erge effects that enhance company performance. The impact brought about 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 gaming companies' performance [6].
(1) Changes in Operational Mode
As of now, the main operations of Sanqi Mutual Entertainnt Ga Company are very extensive, which is also relying on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt, but it also undertakes the research and distribution of mobile gas and web gas. In recent years of developnt, by keeping up with technological advancents, the company has continuously innovated, expanding the market layout to include film and television and the secondary ani sector. It is also shaping the market cultural industry chain of Sanqi Mutual Entertainnt Ga Company across music and VR technology, as well as various live entertainnt fields.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company initially did not have a smooth developnt path. The forr self of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involving the operation of gaming and other entertainnt industries in its industry chain, constantly at risk of being swallowed by the market. However, relying on steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Yet, with subsequent unsatisfactory operations and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of acquisition.
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 seizing for developnt. Through multi-party collaboration, the two companies completed asset restructuring of various industries. It is worth ntioning that the operational strategy that Sanqi Mutual Entertainnt had been running began to show its prowess. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to the present two-major listed company with advanced production and modern cultural creative industries running concurrently. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt was undergoing changes. The business scope previously covered by cultural creative industries. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. previously covered by cultural creative industries.
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