(Anti-theft, to be posted 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 witnessed by the public, and the dissemination of gas is no longer confined to rigid advertising models. The influence of gas has gradually expanded to all aspects of life, correspondingly requiring ga companies to continuously integrate resources, innovate and iterate in line with the rapid developnt of the tis, and improve performance. Diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode for corporate developnt, is also applicable to ga companies. This paper 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 Company
Diversification strategy is a market strategy asure taken by enterprises in their operation process to occupy more new markets and expand new ones. It is also a strategic plan that enterprises need to adopt to avoid the risks encountered in operating a single business by entering new business fields with preparation and focus. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a qualitative change from a quantitative one in the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Stepping into 2021, with the effective control of the epidemic by the state, people's lives have returned to normal, and the economy and culture have shown a strong recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to the pre-epidemic level [1]. This is very good news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not significantly affect the gaming industry, the inability to carry out offline activities has always impacted the performance of ga companies. With the recovery of the cultural industry, for most ga companies, this ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies towards sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the state has promulgated related policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spreading speed of the online network. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention and control period. However, due to the fact that every company wants to squeeze into the online market, the competitive environnt within the cultural industry is extrely fierce. Many traditional offline companies cannot withstand the impact of the pandemic and have been eliminated from society, but many cultural industries have successfully transford in this short two-year period. These companies mostly rely on diversification strategy mode to accelerate transformation and upgrading, and have also gained substantial rewards during the pandemic prevention and control period with a significant increase in residency consumption levels, obtaining more diverse developnt models and sources of funding, for example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth learning from by most ga companies [3].
2. A Brief Analysis and Classification of Diversification Strategy
(1) A Brief Analysis of Diversification Strategy
Diversification Strategy was proposed by the pioneer of strategic managent, Igor Ansoff, in his book "Corporate Strategy." This impactful strategic model is involved in policies and guiding principles for managent in several countries, so much so that today every big and small company is seeking a place through diversification strategy developnt models [4].
It refers to enterprises using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; vertical integration is when a company extends according to its own developnt status, using product industry chains to penetrate other market fields to seek new consurs; concentric diversification emphasizes innovation within existing technology, requiring the production of new products within the existing production scope, the whole process is realized through the tamorphosis of existing technologies; overall diversification focuses more on expanding the scope of operations, requiring the company to link raw materials, technology, and market factors related to its own products to expand its scope of operations [5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. From the transformation of these two parts, effects gradually arise to drive the company's performance improvent, and the impacts brought by diversification strategy are manifold, 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) Changes in the Operation Model
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also advantageously brought about by diversification strategy. The company's business not only involves the operation of interactive entertainnt, but also comprehensively covers the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company, and has, in recent years, continuously innovated in line with epoch-making technology. It has expanded the market to include layout in film, animation, and the secondary dinsion, as well as shaping the cultural industry chain of Sanqi Mutual Entertainnt Ga Company in the music, VR technology, and various live broadcast genres and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its early developnt journey was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, being at any ti at risk of being swallowed by the market. However, by relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But along with poor later-stage operation and market contraction, Sanqi Mutual Entertainnt ultimately did not escape from being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60 percent equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed various asset restructurings under multi-party collaboration. It is worth ntioning that the strategy operated by Sanqi Mutual Entertainnt has at this ti begun to show initial promise. Sanqi Mutual Entertainnt Company has transford from a single modern cultural creative company before the acquisition to now successfully adapting its strategic company operation to the advanced interactive entertainnt sector, undergoing changes in its strategic company operation, and the scope of business covered by the previously cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. has a cultural creative industry covering...
The dual main business listed company of production manufacturing and modern cultural creativity, corresponding to Sanqi...
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