(To prevent theft, it will be sent later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the public. Ga dissemination thods are no longer confined to rigid promotional models, and the influence of gas has gradually expanded into all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and iterate to improve performance in line with the rapid developnt of the era. A diversification strategy perfectly aligns with the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This article elucidates the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategic tool employed by enterprises during operation to capture and explore new markets. It also helps enterprises to avoid risks encountered in operating a single business, and strategically enter new business fields with targeted preparation. Applying diversification strategy to ga companies can effectively enhance company performance, bringing an evolutionary change from quantitative to qualitative developnt for the growth of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives returned to normal, and economic and cultural sectors exhibited a promising recovery trend. On April 30, 2021, data published by the National Bureau of Statistics indicated that the developnt of the cultural industry nationwide had fundantally returned to pre-pandemic levels [1]. This is extrely favorable news for the ga industry, which constitutes a significant portion of the cultural industry. Although the pandemic's arrival did not greatly affect the ga industry, the inability to conduct offline activities has always impacted the performance of ga companies. The recovery of the cultural industry ans that many ga companies will be driven towards continuous developnt amidst the large-scale growth and prosperity of the cultural industry. [2]
From the outbreak of last year's pandemic to the current stabilization, the country has issued relevant policies across various aspects such as finance, regulations, and investnts, supporting the developnt of the cultural industry. Although the pandemic hindered people's outings, it could not control the speed of online network dissemination. The ergence of new dia fostered the developnt of the cultural industry during the pandemic prevention and control period. However, as various enterprises tried to enter the online market, the competitive environnt within the cultural industry beca extrely intense. Several traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. Yet, within these short two years, nurous cultural industries successfully transford. Most of these enterprises relied on the diversification strategy model to accelerate transformation and upgrade, yielding substantial benefits amidst the significant increase in household consumption levels during pandemic prevention and control, achieving more diverse developnt models and revenue channels. For instance, the transformation Sanqi Mutual Entertainnt underwent during the pandemic control period is sothing most ga companies should consider [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Igor Ansoff, the father of strategic managent, proposed the diversification strategy. In his book "Corporate Strategy," he discussed the classification of diversification strategies. This world-influencing strategic model is involved in various countries' managent policies, allowing every enterprise big or small to strive for a place following the developnt model of diversification strategies [4].
(b) Classification and aning of Diversification Strategy
Horizontal diversification refers to enterprises using the initial conditions provided by the market to produce new products that et users' new demands to drive market consumption. Vertical integration involves enterprises deriving vertically based on their developnt status, using the product industry chain to penetrate other market fields to find new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, realizing the entire process through the transformation of existing technology. General diversification emphasizes changes in expanding the scope of business. Enterprises need to expand their business range by connecting factors related to their products, raw materials, technology, and markets [5].
3. Impact of Diversification Strategy on Ga Company Performance
In the operation 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. Effects gradually arise from these two parts, enhancing company performance. The impact brought by the diversification strategy is multifaceted. This paper uses 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 Operation Model
Currently, the primary operation scope of Sanqi Mutual Entertainnt Ga Company is extensive, which is also the advantage brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully covers the developnt and distribution of mobile gas and web gas. Recent developnts include continuous innovation to catch up with era technology and expanding the market to include film and ani secondary characters. It also creates a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various streaming entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth developnt path in the early stages. The precursor of Sanqi Mutual Entertainnt Ga Company was a small enterprise that initially did not involve the operation of gas and other entertainnt industries in its industry chain, constantly 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. But, accompanying subsequent poor operation and market contraction, Sanqi Mutual Entertainnt ultimately could not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although it was acquired in na, for Sanqi Mutual Entertainnt, this is an opportunity worth seizing for developnt. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the strategy Sanqi Mutual Entertainnt has been operating unfolded at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual-core listed company running advanced production and modern cultural creativity in parallel. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainnt also changed—the business scope previously covered by the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. was initially defined by the cultural creative industry scope.
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