(Anti-theft, to be published at that ti.) Abstract: Accompanied by technological advancents and the coverage models of intelligent networks, the rise of the ga industry in recent years is evident to the public. The spread of gas is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies must continue to integrate resources, innovate, and upgrade to enhance performance with the rapid developnt of the tis. Diversification strategy perfectly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. This paper takes 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 employed by enterprises during operations to occupy and explore new markets more effectively, as well as to mitigate risks encountered during the operation of a single business. It involves targeted and prepared strategic planning to enter new business areas. The practical application of diversification strategy in ga companies can effectively enhance company performance and bring about a qualitative change from quantitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural activities demonstrate a great trend of recovery. On April 30, 2021, according to relevant data published by the National Bureau of Statistics, the developnt of the nationwide cultural industry has basically returned to the pre-pandemic level[1]. This is very favorable news for the ga industry, which takes up a large proportion of the cultural industry. Although the pandemic has not caused significant impacts on the ga industry, the inability to conduct offline activities has always affected ga companies' performance. The warming of the cultural industry indicates significant developnt and prosperity for many ga companies, which can promote more ga companies towards sustainable developnt[2].
From last year's outbreak of the pandemic to the current pandemic stability, the nation has implented relevant policies from various aspects such as finance, institutions, and finance to support the developnt of the cultural industry. The pandemic may have hindered people from traveling, but it could not control the speed of online network transmission. More and more new dia erged, driving the developnt of the cultural industry during the pandemic control period. However, as each enterprise attempts to enter the online market, the competition environnt within the cultural industry has beco exceptionally fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, in these short two years, many successful cultural industry transformations have erged, and these enterprises mainly relied on the diversification strategy model to accelerate transformation and upgrade. During the pandemic control period, when the residents' consumption level significantly improved, they also harvested abundantly, obtaining more diverse developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic control period is worthy of reference by most ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This strategy model, influencing the world, is involved in the managent guidelines and policies of multiple countries, leading to every small and large enterprise today seeking a place according to the diversification strategy developnt model[4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of the four different models derived from the diversification strategy vary. Horizontal diversification refers to the production of new products by enterprises using the original conditions provided by the market to et new user needs, thereby driving market consumption; vertical integration refers to enterprises vertically deriving based on their developnt situation, utilizing the product industry chain to penetrate into other market fields to seek new consurs; concentric diversification emphasizes the innovation of existing technology, requiring the production of new products within the original production range, and realizing the whole process through the transformation of existing technology; conglorate diversification emphasizes expanding the change in operating range, requiring enterprises to contact factors such as raw materials, technology, and market related to their products to expand the operating range[5].
3. Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga company performance is divided into two parts: the change of the operation model and the transfer of strategic planning. The gradual impact from these two parts promotes the improvent of company performance. The impact brought by 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 Operation Model
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is extensive, relying on the advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operation, but also handles the research and distribution of mobile gas and web gas comprehensively. With its developnt in recent years, the company continues to innovate closely following technological advances, expanding the market layout to film, animation, ACG (ani, comics, and gas) fields, as well as shaping its market cultural industry chain in music, VR technology, and various live broadcast entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its early developnt path was not smooth. The company originated as a small enterprise, and initially, its industry chain did not involve the operation of gas and other entertainnt industries, constantly facing the risk of being swallowed by the market. However, with steady developnt in a single industry, Sanqi Mutual Entertainnt Company got listed in 2011. Nevertheless, accompanying poor later operations and market contraction, Sanqi Mutual Entertainnt eventually did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. Under multi-faceted collaboration, the two companies completed asset restructuring in various industries. It is worth ntioning that the exploration strategy always operated by Sanqi Mutual Entertainnt started to reveal its edge at this ti. From a single modern cultural creative company before being acquired, Sanqi Mutual Entertainnt Company transford into a dual-mainline listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operation strategy changed, and the business scope covered by the cultural creative industry of Sanqi Mutual Entertainnt also underwent changes in 2014 by Wuhu Shunrong Auto Parts Co., Ltd.
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