(Anti-theft, will be sent in due ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The dissemination thod of gas is no longer confined to stereotypical promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and improve performance with the rapid developnt of the tis. The diversification strategy perfectly aligns with the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy is an enterprise's preferred mode of developnt and is also applicable to ga companies. This paper uses Sanqi Mutual Entertainnt Company as an example to explain the impact 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 undertaken by enterprises during their operation to capture and expand new markets more effectively. It also serves as a strategic planning approach to anticipate entering new business fields, thereby avoiding risks encountered in the operation of a single business. Applying diversification strategy to ga companies can effectively enhance company performance and bring about a transformation from quantitative to qualitative changes in the company's developnt.
1. The Macro Background of Diversification Strategy
Entering 2021, with strong national control over the pandemic, people's life got back on track, and the economy and culture showed a favorable recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry basically returned to the pre-pandemic level [1]. This is very favorable news for the ga industry, which holds a significant share of the cultural industry. Although the pandemic has not greatly affected the ga industry, the inability to conduct offline activities has always impacted the performance of ga companies. The warming of the cultural industry ans that for most ga companies, the significant developnt and prosperity of the cultural industry can lead more ga companies to the path of sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the nation has issued policies from various aspects such as finance, regulation, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's travel, it could not control the speed of online dissemination, and more and more new dia has erged to drive the developnt of the cultural industry during the pandemic prevention and control period. However, the competition environnt within the cultural industry is extrely fierce due to each enterprise's desire to enter the online market. Nurous traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, in this short span of two years, many successfully transford cultural industries erged, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention and control period, with significantly improved resident consumption levels, they also reaped substantial benefits, acquiring more diversified developnt modes and inco channels, such as Sanqi Mutual Entertainnt Company's transition during the pandemic prevention and control period, which is worth learning by most 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 "What is Business Strategy," where he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in managent guidelines and policies in multiple countries, so much so that today, every enterprise, large or small, is seeking a place according to the developnt model of diversification strategy [4].
(b) 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 diversification strategy also have distinct anings. Horizontal diversification refers to enterprises producing new products that et users' new needs using the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation based on the enterprise's developnt situation, using the product industry chain to penetrate other market fields to seek new consur targets; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, and the entire process is realized through the transformation of existing technology; overall diversification focuses more on expanding the operational scope changes, enterprises need to contact factors such as raw materials, technology, and market related to their products to expand the operational scope [5].
3. The Impact of Diversification Strategy on Ga Company Performance
In the operation process of all ga companies, it can be said that the impact of diversification strategy on ga company performance is uniformly divided into two parts: the change in operational mode and the transfer of strategic planning. From these two changes, effects gradually erge, driving the improvent of company performance. The impact brought by diversification strategy is multifaceted, and this paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance [6].
(1) Change in Operational Mode
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is very broad, which is also reliant on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also wholly manages the research and distribution of mobile gas and web gas. Moreover, in recent years, with technological advancent, Sanqi Mutual Entertainnt Ga Company has continuously innovated, expanding the market to layout film and ani subcultures, as well as shaping its market cultural industry chain in music, VR technology, and various live broadcast pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company's initial developnt road was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at first, Sanqi Mutual Entertainnt's industry chain did not involve the operation of gas and other entertainnt industries, always facing the risk of being swallowed by the market. However, relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011, but with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt ultimately did 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. Through multi-faceted collaboration between the two companies, various industry asset restructurings were completed. It is worth noting that the strategic deploynt operated by Sanqi Mutual Entertainnt has already shown remarkable prospects. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creativity company before being acquired to what is now a dual-core listed company with advanced manufacturing and modern cultural creativity running parallel. Correspondingly, Sanqi Mutual Entertainnt's company operational strategy also underwent changes. The scope of business covered by the original cultural creativity industry. This scope was later expanded with the acquisition by Wuhu Shunrong Auto Parts Co., Ltd, marking the company's stride into broader, more diversified business domains.
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