(Anti-theft, to be issued on ti.) Abstract: Accompanying technological progress and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The dissemination of gas is no longer confined to rigid promotional modes, and the influence of gas is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to constantly integrate resources, innovate iterations, and improve performance as tis rapidly develop. A diversification strategy aptly addresses the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is equally applicable to gaming companies. This article uses the Sanqi Mutual Entertainnt Company as an example to explain the impact of a diversification strategy on a gaming company's performance.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a market strategy asure adopted by enterprises in the operation process to occupy and develop new markets more extensively, as well as to avoid risks encountered in operating a single business. It involves strategically and purposefully entering new business fields. Applying a diversification strategy to a gaming company can effectively enhance performance and bring about a transformation from quantitative change to qualitative change in a company's developnt.
1. The Macroeconomic Background of the Diversification Strategy
In 2021, under the state's effective control of the pandemic, people's lives returned to normal, and the economic culture is also showing a promising revival. On April 30, 2021, according to data published by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a significant share of the cultural industry. Although the arrival of the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities continued to affect gaming companies' performance. With the revival of the cultural industry, for most gaming companies, this ans that the great developnt and prosperity of the cultural industry can drive more gaming companies to embark on the path of sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the country has introduced relevant policies in fiscal, institutional, and financial areas to support the developnt of the cultural industry. Although the pandemic has hindered people's movents, it has been unable to control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, since each enterprise wants to squeeze into the online market, the competitive environnt within the cultural industry has beco very fierce. Many traditional offline enterprises were unable to withstand the pandemic's impact, leading to their elimination from society. However, in these short two years, many successful cultural industry transformations have also erged, and most of these enterprises rely on the diversification strategy model to accelerate transformation and upgrading. They have reaped substantial benefits, gaining more diversified developnt models and inco channels during the pandemic prevention period when residents' consumption levels significantly increased. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating by most gaming companies [3].
2. Analysis and Classification of the Diversification Strategy
(A) Analysis of the Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This strategic model, influential worldwide, is involved in the managent guidelines and policies of multiple countries, so today, businesses of all sizes seek a foothold based on the diversification strategy developnt model [4].
(B) Classification and aning of Diversification Strategies
There are four types of diversification strategies: Horizontal Diversification, Vertical Integration, Concentric Diversification, and Conglorate Diversification. The anings of the four different models derived from the diversification strategy also differ. Horizontal diversification refers to enterprises producing new products that et new user needs utilizing original market conditions, thereby driving market consumption. Vertical integration ans enterprises extend vertically based on their developnt status, using product supply chains to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology and requires the production of new products within the existing production scope, realizing transformation through the evolution of the original technology. Conglorate diversification pays more attention to expanding the range of operations, requiring enterprises to link with related raw materials, technology, market factors, etc., to expand the range of operations [5].
3. The Impact of the Diversification Strategy on Gaming Company Performance
It can be said that in the operation processes of all gaming companies, the impact of the diversification strategy on gaming company performance is uniformly divided into two parts: changes in operational models and shifts in strategic planning. From the changes in these two parts, effects gradually arise, leading to improvents in company performance. The impact brought by the diversification strategy is multifaceted. This paper will take the Sanqi Mutual Entertainnt Ga Company as a case study to analyze the impact of the diversification strategy on gaming company performance [6].
(1) Changes in Operational Models
Currently, the primary operational scope of the Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but the Sanqi Mutual Entertainnt Ga Company also undertakes the research and distribution of mobile gas and web gas. In recent developnts, the company continuously innovates by keeping up with contemporary technology, broadening the market layout to encompass film, comics, and the two-dinsional space, and it also shapes the cultural industry chain belonging to the Sanqi Mutual Entertainnt Ga Company within various pan-entertainnt businesses such as music, VR technology, and live broadcasts.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its early developnt was not smooth. Originally, the precursor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and its initial industry chain did not involve the operation of gaming and other entertainnt industries, with the ever-present risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. With subsequent poor managent and market contraction, it ultimately couldn't evade the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in 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 industrial asset reorganizations were completed. Notably, the strategy that Sanqi Mutual Entertainnt has been operating began to show its brilliance at this ti. The company transford from a single modern cultural and creative company before being acquired to the current dual-main business listed company integrating advanced manufacturing and modern cultural creativity. Correspondingly, the company operational strategies of Sanqi Mutual Entertainnt were also undergoing changes, with the business scope previously covered by the cultural and creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially covered the business scope by the cultural and creative industry.
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