(Anti-theft, will be released later.) Abstract: With the advancent of technology and the coverage of the intelligent network model, the rise of the gaming industry in recent years has moved the populace beyond stereotypical promotional modes. The influence of gas has gradually expanded to all aspects of life, and correspondingly, ga companies also need to continuously integrate resources, innovate, update, and improve performance amidst the rapid developnt of the tis. The diversification strategy precisely fits the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, the diversification strategy as a preferred mode of enterprise developnt is equally 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 companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool employed by enterprises during their operation to capture more new markets and expand existing ones. It also serves as a strategic plan for enterprises to avoid risks encountered during the operation of single businesses and to strategically and preparedly enter new business fields. Applying the diversification strategy to ga companies can effectively enhance company performance, bringing about a transformation from quantitative change to qualitative change for the company's developnt.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, with the nation's effective control over the pandemic, people's lives returned to normal, and both economy and culture showed a promising recovery trend. On April 30, 2021, data published by the National Bureau of Statistics indicated that the developnt of the national cultural industry had basically recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a significant proportion in the cultural industry. Although the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities inevitably affected the performance of ga companies. Through the revival of the cultural industry, for most ga companies, this ans the major developnt and prosperity of the cultural industry can promote and drive more ga companies onto a path of sustainable developnt [2].
From last year's outbreak of the pandemic to now when the pandemic has stabilized, the state has enacted relevant policies from fiscal, institutional, financial, and other aspects to support the developnt of the cultural industry. Although the pandemic has restrained people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, as every enterprise wants to squeeze into the online market, the competitive environnt within the cultural industry has beco extrely fierce. Many traditional offline enterprises have been eliminated by society during this ti due to inability to withstand the pandemic's impact. However, in these short two years, nurous cultural industries that successfully transitioned have erged. Most of these enterprises accelerated transformation and upgrades relying on the diversification strategy mode, and they also prospered similarly during the pandemic prevention period when the residents' consumption levels significantly increased, gaining more diverse developnt models and funding sources, like the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period, deserves reference by most ga companies [3].
2. Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
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 strategy. This world-influencing strategic mode is involved in managent guidelines and policies across various countries, leading to every enterprise large and small today seeking a place according to the diversification strategy developnt mode [4].
(b) Classification and aning of Diversification Strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four modes derived from diversification strategy each have distinct anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et new user needs, thus driving market consumption. Vertical integration involves enterprises vertically deriving according to their own developnt situation, using the product supply chain to penetrate other market fields to seek new consur objects. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the original production range, achieving the entire process through the transformation of existing technology. Overall diversification emphasizes expanding the range of operations, where enterprises need to connect with raw materials, technologies, and market factors related to their products to expand operational scope [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. Effects gradually erge from these two parts of transformation, driving 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 the impact of diversification strategy on ga company performance [6].
(1) Change of Operation Mode
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also an advantage brought by the diversification strategy. The company's business involves not only the operation of interactive entertainnt but also takes full charge of the developnt and release of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnts, it has innovated continuously in line with the scientific progress of the era, expanding the market to cover film and ani subcultures, and also crafting a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in various pan-entertainnt businesses such as music, VR technology, and various live broadcasts.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the developnt path in the early stages was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involving ga and other entertainnt industry operations in its industry chain, having a constant risk of being annexed by the market. Yet, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but with later poor managent and market constraint, Sanqi Mutual Entertainnt eventually did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, it was an opportunity worth seizing for Sanqi Mutual Entertainnt. Under the multi-party collaboration, the two companies completed the asset restructuring of various industries. It is worth ntioning that the exhibition strategy always operated by Sanqi Mutual Entertainnt began to show promise at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a dual-main business listed company with advanced production manufacturing and modern cultural creativity paralleled at present. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy was also undergoing changes, the scope of business covered by the original cultural creative industry.
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