(Anti-theft, to be released in due ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The way gas are disseminated is no longer limited to rigid advertising models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. A diversification strategy aptly ets the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, the diversification strategy, as a preferred mode of enterprise developnt, is also applicable to ga companies. This paper uses the example of Sanqi Mutual Entertainnt Company 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 strategic tool adopted by companies in the process of operation to occupy and explore new markets. It is also a strategic plan for companies to avoid risks encountered in operating a single business by entering new business areas with purpose and preparation. Applying a diversification strategy in a ga company can effectively enhance company performance, bringing about a process of transformation from quantitative changes to qualitative changes in the company's developnt.
1. The Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives are getting back on track, and there is a great trend of recovery in the economy and culture. 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 pre-pandemic levels [1]. This is very favorable news for the ga industry, which holds a significant proportion in the cultural industry. Although the pandemic did not have a significant impact on the ga industry, the inability to conduct offline activities always affected the performance of ga companies. With the recovery of the cultural industry, this ans for most ga companies that the great developnt and prosperity of the cultural industry can promote and facilitate more ga companies to embark on the road of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stabilization, the state has promulgated relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the pandemic obstructed people's travel, it could not control the propagation 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, since each enterprise wants to squeeze into the online market, the competitive environnt in the cultural industry is very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. Still, in these short two years, many successfully transford cultural industries have erged. These companies mostly relied on a diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention and control period, when the level of resident consumption increased significantly, they also gained richly, obtaining more diversified developnt models and channels for financial inco. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth learning from for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in managent guideline policies of several countries, leading to every enterprise, large or small, seeking a place according to the developnt model of diversification strategy today [4].
(ii) Classification of Diversification Strategy and Its aning
There are four types of diversification strategies in total: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from the diversification strategy also have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user demands, thereby driving market consumption. Vertical integration is for enterprises to extend vertically according to their developnt situation and penetrate other market fields with the product industry chain to seek new consurs. Concentric diversification focuses more on innovation of the original technology, requiring production of new products within the original production range, achieving the entire process through the tamorphosis of the original technology. Conglorate diversification, however, pays more attention to the expansion of business scope changes. Enterprises need to connect factors such as raw materials, technology, and markets related to their products for the expansion of their business scope [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of the diversification strategy on ga company performance is uniformly divided into two parts: the change of the operating model and the shift of strategic planning. The gradual effects from these two parts drive the company's performance improvent. The impact brought by the diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of the diversification strategy on ga company performance [6].
(1) Change of Operating Model
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive. This is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully undertakes the research, developnt, and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, along with developnt, the company continuously innovates following the era's technology, expanding the market to layout in film, television, and ani ACG. It also shapes its market cultural industry chain in music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, always at 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. Accompanied by poor operations and market contraction in the later stages, Sanqi Mutual Entertainnt ultimately 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 60% of the equity. Although nominally acquired, it was a developnt opportunity for Sanqi Mutual Entertainnt worth seizing. Through multi-party collaboration, the two companies completed various industrial asset restructurings. It's worth ntioning that the strategic direction always operated by Sanqi Mutual Entertainnt began to show erging trends at this ti. Sanqi Mutual Entertainnt Company transford from a pre-acquisition single modern cultural and creative company into what is today a dual major-listed company integrating advanced manufacturing and modern cultural creativity. Corresponding to that, Sanqi Mutual Entertainnt's company operation strategy also underwent changes. The business scope initially covered by the cultural and creative industry. In 2014, the business scope covered by Wuhu Shunrong Auto Parts Co., Ltd.'s prior cultural and creative industry.
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