(Anti-theft, will be posted later.) Abstract: Along with technological advancents and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to all citizens. The thod of ga dissemination is no longer restricted to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate, update, and improve performance in accordance with the rapid developnt of the tis. Diversification strategy perfectly caters to the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, diversification strategy, as a preferred mode for corporate developnt, is equally applicable to ga companies. This paper explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy employed by enterprises during operations to occupy new markets and explore new markets more extensively. It is also a strategic planning adopted by enterprises to avoid the risks encountered during operations in a single business, entering a new business field with targeting and preparation. The practical application of diversification strategy in ga companies can effectively improve company performance, bringing about a process of quantitative change to qualitative change in the developnt of ga companies.
1. Macroeconomic background of diversification strategy
Entering 2021, under the strong control of the pandemic by the state, people's lives have returned to normal, and the economy and culture demonstrate a promising recovery. On April 30, 2021, according to relevant data published by the National Bureau of Statistics, cultural industry developnt nationwide basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a significant part of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities continuously impacted the performance of ga companies. With the warming of the cultural industry, for most ga companies, this signifies 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 of the pandemic to the current stabilization, the state has issued relevant policies supporting the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. Although the pandemic has hindered people's travel, it cannot control the transmission speed of online networks. More and more new dia have erged, driving cultural industry developnt during pandemic prevention and control period. However, the competitive environnt between cultural industries is extrely fierce as various enterprises aim to enter the online market, and many traditional offline businesses have been eliminated by society due to the impact of the pandemic. But in this short span of two years, many cultural industries succeeded in transforming, with most of these enterprises speeding up transformation and upgrades through diversification strategy models, reaping rich rewards during the pandemic prevention and control period when consur levels significantly improved, acquiring more diverse developnt modes and revenue channels, such as the transformation of Sanqi Mutual Entertainnt Company during the pandemic is worth learning by most ga companies [3].
2. Brief analysis and classification of diversification strategy
(I) Brief analysis of diversification strategy
Diversification strategy was proposed by the ancestor of strategic managent, Igor Ansoff, in his book "Corporate Strategy." It ntions the classification of diversification strategy. This world-influencing strategy mode is involved in the managent policy of multiple countries, so that today every enterprise, big or small, seeks positions according to the developnt model of diversification strategy [4].
(II) Classification and aning of diversification strategy
Diversification strategy is categorized into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of these four distinct modes derived from diversification strategy also vary. Horizontal diversification ans enterprises use the conditions provided by the market to produce new products eting new user needs, thereby driving market consumption; Vertical integration ans enterprises vertically derive based on their developnt situation, penetrating into other markets using product industry chains; Conglorate diversification prefers expanding the variation in business scope, enterprises need to consider factors related to raw materials, technology, and market associated with their products to expand the scope of operations [5].
3. The impact of diversification strategy on ga company performance
In the operational processes of all ga companies, diversification strategy impacts ga company performance divided into two parts: changes in operational modes and shifts in strategic planning. From the changes in these two parts gradually produces effects that drive the improvent of company performance. The impact of diversification strategy is multifaceted. 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) Change in operational mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad, which benefits from the advantages brought by diversification strategy. In addition to interactive entertainnt operations, Sanqi Mutual Entertainnt Ga Company also fully undertakes the research, developnt, and distribution of mobile gas and web gas. In recent years of developnt, it continuously innovates by keeping pace with the tis, expanding the market to the layout of film and animation and the ACG sector, and shaping its market cultural industry chain of Sanqi Mutual Entertainnt Ga Company in music and VR technology and various live streaming and other pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have an entirely smooth path in early developnt. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, at first, not involved in ga and entertainnt industry operations within Sanqi Mutual Entertainnt's industrial chain, with the constant risk of being swallowed by the market. However, by relying on the steady developnt of a single industry, the Sanqi Mutual Entertainnt Company went public in 2011. But with subsequent poor 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 Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% stake. Although nominally acquired, this was a grasp-worthy developnt opportunity for Sanqi Mutual Entertainnt. The two companies completed asset restructuring of various industries under multi-disciplinary cooperation. It is worth ntioning that the exhibition strategy operated by Sanqi Mutual Entertainnt has already shown initial results. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before acquisition to the present day with dual main listed companies alongside advanced production manufacturing and modern cultural creativity. Correspondingly, the company operation strategy of Sanqi Mutual Entertainnt is also changing, originally covered business scope of cultural creative industries. In 2014, the business scope covered by cultural creative industries of Wuhu Shunrong Auto Parts Co., Ltd.
User Comments
0 comments from readers