(Anti-theft, to be published later.) Abstract: With the advancent of technology and the pervasive coverage of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The mode of spreading gas is no longer confined to rigid promotional thods, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, gaming companies must continually integrate resources, innovate and iterate to enhance performance in response to the rapid developnt of the tis. Diversification strategy precisely aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to gaming companies. This article explains the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; gaming company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans employed by enterprises to capture new markets and expand existing markets. It is also a strategic plan used by enterprises to avoid risks encountered in operating a single business and to enter new business fields with focus and preparation. Applying diversification strategy to gaming companies can effectively improve company performance, bringing a process of transition from quantitative change to qualitative change in the developnt of gaming companies.
1. The macro background of diversification strategy
Entering 2021, with the country's strong control over the pandemic, people's lives have resud normalcy, and economic and cultural recovery is in full swing. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which holds a large share within the cultural industry. Although the onset of the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted gaming company performance. With the cultural industry's recovery, this ans the great developnt and prosperity of the cultural industry can drive many gaming companies onto a path of sustainable developnt[2].
From last year's outbreak of the pandemic to the current stabilization, the country has promulgated relevant policies supporting cultural industry developnt from multiple aspects such as finance, systems, and finance. Although the pandemic has hindered people's travels, it cannot control the speed of online network dissemination. The ergence of increasingly more new dia has driven cultural industry developnt during pandemic control. However, as many enterprises attempt to enter the online market, leading to intense competition within the cultural industry, many traditional offline enterprises have been unable to withstand the pandemic's impact and have been eliminated by society. Yet within these short two years, nurous successful transformations in the cultural industry have erged, relying on diversification strategy models to expedite their transformation and upgrading, and during the pandemic control period, when resident consumption levels have significantly increased, they have also gained substantial returns, acquiring more diverse developnt models and funding sources, such as the transformation made by Sanqi Mutual Entertainnt Company during the pandemic control period, which is worthy of learning by most gaming companies[3].
2. Brief analysis and classification of diversification strategy
(a) 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 policies across multiple countries, resulting in every enterprise, small or large, seeking a place following the developnt model of diversification strategy today[4].
(b) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and complete diversification. The four different modes derived from diversification strategy have different anings. 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 enterprises deriving vertically according to their own developnt situation, using the product industry chain to penetrate into other market fields and seek new consurs. Concentric diversification pays more attention to the innovation of existing technologies and requires the production of new products within the existing production scope; the entire process requires enterprises to contact and link raw materials and technology related to existing products and market factors to expand their business scope[5].
3. Impact of diversification strategy on gaming company performance
In all gaming company operations, the impact of diversification strategy on gaming company performance can be divided into two parts: changes in operational mode and shifts in strategic planning. From these two parts, changes gradually produce effects that enhance company performance. The impact brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze the influence of diversification strategy on gaming company performance[6].
(1) Changes in operational mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad; this is also dependent on the advantages brought by diversification strategy. The company not only involves the operation of interactive entertainnt but also handles the research and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent developnts, it has continually innovated by keeping up with technological advancents, expanding the market to layout film, ani, and second dinsion, and establishing a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its early developnt path wasn't smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small-scale enterprise, initially not involving the operation of gas and other entertainnt industries in its industrial chain, always at risk of being annexed by the market. However, relying on the steady developnt of its single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet with poor operational performance and market contraction in later years, Sanqi Mutual Entertainnt ultimately couldn't escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent equity. Although nominally acquired, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed asset restructuring of various industries through multifaceted collaboration. It is worth ntioning that the strategic operations that Sanqi Mutual Entertainnt Company has been running were beginning to show their edge, transitioning from a singular modern cultural creative company before acquisition to a currently double-main business listed company of advanced manufacturing and modern cultural creativity side by side. Correspondingly, Sanqi Mutual Entertainnt's company operational strategy is also undergoing changes in the scope previously covered by the cultural creative industry. It should be noted that Sanqi Mutual Entertainnt Company from before the acquisition was a single modern cultural creative company.
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