(Anti-theft, will be released later.) Summary: With the progress of technology and the coverage mode of the smart network, the rise of the ga industry in recent years is evident to all citizens. The dissemination platforms of gas are no longer limited to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Accordingly, ga companies also need to continuously integrate resources, innovate and upgrade, and improve performance with the rapid developnt of the era. The diversification strategy exactly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred mode of enterprise developnt, is also applicable to ga companies. This article explains the impact of the 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 strategic tool adopted by enterprises during operations to capture new markets, expand into new markets, and to mitigate risks encountered in the operation of single businesses. It is a strategic plan aid at entering new business fields with targets and preparation. Applying the diversification strategy to ga companies can effectively improve company performance, bringing a process from quantitative change to qualitative change for the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Stepping into 2021, under the effective control of the pandemic by the country, people's lives returned to normal, and culture and economy showed a promising recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry developnt had basically recovered to the pre-pandemic levels [1]. This is very favorable news for the ga industry, which holds a significant proportion within the cultural industry. Even though the arrival of the pandemic did not greatly affect the ga industry, the inability to conduct offline activities has consistently impacted the performance of ga companies. With the revival of the cultural industry, for most ga companies, this signifies that the large-scale developnt and prosperity of the cultural industry can promote and lead more ga companies onto a path of continuous developnt [2].
From the outbreak of last year's pandemic to the current stabilization of the pandemic, the country has issued supportive policies for cultural industry developnt in terms of finance, institutions, and finance, etc. Although the pandemic has halted people's travel, it has not controlled the speed of online network propagation. More and more new dia erged, driving the developnt of the cultural industry during pandemic prevention and control. However, due to various enterprises trying to squeeze into the online market, the competitive environnt within the cultural industry is exceedingly fierce. Many traditional offline enterprises could not withstand the pandemic impact and were eliminated by society. Yet, within these short two years, nurous successful transformations within the cultural industry erged, and these enterprises primarily relied on the acceleration of transformation and upgrade through the diversification strategy model, Hence they gained considerably during the period of improved resident consumption levels amid pandemic prevention and control, obtaining more diversified developnt modes and funding inco channels, such as the transformation undertaken by Sanqi Mutual Entertainnt Company during pandemic prevention and control, which is worth emulating by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(i) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This strategy mode, which has influenced the world, is involved in the managent policy of multiple countries, thus today, every
overall diversification. The four different mode anings derived from the diversification strategy each differ. Horizontal diversification refers to an enterprise producing new products satisfying new user needs using the original market conditions as a catalyst for market consumption. Vertical integration is when an enterprise vertically develops based on its developnt situation, infiltrating other market fields through the product industry chain to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring production of new products within the existing production scope, The whole process relies on the transformation of existing technology to realize it. Overall diversification focuses more on changing the business scope expansion, Enterprises need to connect related raw materials, technology, and market factors with their products to expand the business scope [5].
3. The Impact of Diversification Strategy on Ga Companies' Performance
In the operation process of all ga companies, the impact of diversification strategy on ga companies' performance is uniformly divided into two parts: change of operation mode and transfer of strategic planning. The effects from these two transformations gradually promote the improvent of company performance. The impact brought by the diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga companies' performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change of operation mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very extensive as it relies on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but also encompasses the developnt and distribution of smartphone and web gas under Sanqi Mutual Entertainnt Ga Company. Furthermore, in recent developnt, it has continually innovated alongside era technology, expanding the market layout to include film, animation, the second dinsion, and even shaping the market cultural industry chain in music, VR technology, and various live entertainnt businesses owned by Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in its early stages was not smooth. Sanqi Mutual Entertainnt Ga Company originated as a small enterprise, initially not involving in the operation of gas and other entertainnt industry within its industry chain, facing constant risks of being swallowed by the market. Yet, relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011, although due to later stage mismanagent and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd.. Even though nominally it was acquired, for Sanqi Mutual Entertainnt this was a developnt opportunity worth grasping. The two companies completed asset restructuring across multiple collaborations, It is worth ntioning that the exhibition strategy consistently operated by Sanqi Mutual Entertainnt reached maturity at this ti.
Diversification strategy is a market strategic tool adopted by enterprises during operations to capture new markets and expand into new markets in order to mitigate risks encountered in the operation of single businesses.
It is a strategic plan aid at entering new business fields with targets and preparation. Applying the diversification strategy to ga companies can effectively improve company performance.
Stepping into 2021, under the effective control of the pandemic by the country, people's lives returned to normal, and the culture and economy showed a promising recovery trend. On April 30, 2021, according to the National Bureau of Statistics.
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