(Anti-theft, will be sent later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The way gas spread is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and update with the rapid developnt of the tis to improve performance. The diversification strategy fits well with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred developnt model for enterprises, is also applicable to ga companies. This article 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
Diversification strategy is a market strategy ans adopted by enterprises in the process of operation to capture new markets and develop new markets further. It is also a strategic plan adopted to enter new business fields with focus and preparation to avoid risks encountered in the operation of a single business. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a transformation from quantitative to qualitative changes in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Stepping into 2021, under the strong control of the state over the pandemic, people's lives are on track, and the economy and culture show a good recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the national cultural industry developnt has basically recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the arrival of the pandemic did not cause the gaming industry much impact, the inability to carry out offline activities always affects the performance of ga companies. With the warming of the cultural industry, this ans that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt for most ga companies [2].
From the outbreak of the pandemic last year to the stability of the pandemic now, the state has issued relevant policies in finance, system, finance, and other aspects to support the developnt of the cultural industry. Although the pandemic blocked people's travel, it could not control the speed of the online network's dissemination. More and more new dia have erged to promote the developnt of the cultural industry during the pandemic prevention and control period. However, as all enterprises want to squeeze into the online market, the competitive environnt among the cultural industry is very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated from society at this ti. However, in just two years, many cultural industries have successfully transford, and most of these enterprises rely on the diversification strategy model to accelerate transformation and upgrading. They also gained fruitful results during the pandemic prevention and control period, where residents' consumption levels significantly increased, and obtained more diverse developnt models and funding inco channels. For example, the transformation that Sanqi Mutual Entertainnt Company made during the pandemic prevention and control period is worth learning from by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the founding father of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in managent guidelines and policies of multiple countries. As a result, today, every large and small enterprise is seeking a place according to the developnt model of diversification strategy [4].
(2) Classification and Implications of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy have different implications. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et users' new needs, thereby driving market consumption. Vertical integration is when enterprises derive vertically according to their developnt status, utilize product industrial chains to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on innovation in original technology, needing to produce new products within the original production scope. The entire process is realized through the transformation of the original technology. Conglorate diversification pays more attention to the expansion of the business scope changes. Enterprises need to connect with original materials, technology, and markets related to their products to expand the business scope [5].
3. Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga company performance is unified into two parts: the change of operation mode and the shift of strategic planning. The effects gradually produced from these two parts drive the improvent of company performance. The impact brought by the 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 the performance of ga companies [6].
(1) Change of Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also undertakes the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, they have kept pace with the tis and technology, continuously innovating, and expanding the market layout to film and animation in the ACG sector. They are shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live streaming, among other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt path was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, Sanqi Mutual Entertainnt's industry chain did not involve ga and other entertainnt industry operations, and there was always a 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. Nevertheless, with poor post-period operations and market contraction, Sanqi Mutual Entertainnt still did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% equity acquisition. Although it was nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. The two companies completed asset restructuring of various industries under multi-party cooperation. It is worth ntioning that the strategic exhibition that Sanqi Mutual Entertainnt has always operated on began to reveal its prowess at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired into today's dual-listed company with advanced production manufacturing and modern cultural creativity, and correspondingly, Sanqi Mutual Entertainnt's company operation strategy has also been changing. The previous scope of business covered by the cultural creative industry. In 2014, the original scope of business covered by Wuhu Shunrong Auto Parts Co., Ltd.'s prior cultural creative industry.
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