(Anti-theft, to be posted later.) Abstract: With the advancent of technology and the coverage of intelligent networks, the rise of the ga industry in recent years is evident to the public. The dissemination thods of gas are no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and update to improve performance in line with the rapid developnt of the tis. The diversification strategy precisely caters to the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as the preferred model for enterprise developnt, is equally applicable to ga companies. This article explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy adopted by enterprises during operations to capture more new markets and expand existing ones. It is also a strategic plan that enterprises use to avoid risks encountered during the operation of a single business by entering new business fields with targeted preparation. Applying a diversification strategy to ga companies can effectively enhance company performance and bring about a transformation from quantitative to qualitative change in the developnt of the companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives are back on track, and the economic and cultural sectors are showing a promising recovery. 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], which is very favorable news for the ga industry, which occupies a significant portion of the cultural industry. Although the pandemic did not greatly impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The recovery of the cultural industry suggests that for most ga companies, the large-scale developnt and prosperity of the cultural industry can drive more ga companies towards a path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stabilization, the country has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, institutions, and finance. Although the pandemic halted people's movents, it could not control the speed of online network dissemination. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention period. However, since each company wants to squeeze into the online market, the competitive environnt within the cultural industry has beco very fierce. Many traditional offline businesses could not withstand the impact of the pandemic and were eliminated by society, but in these short two years, many successfully transford cultural industries have erged. These enterprises mostly rely on the diversification strategy model to accelerate transformation and upgrading and have also reaped significant benefits from the increase in residents' consumption levels during the pandemic prevention period, obtaining diversified developnt models and inco channels. Sanqi Mutual Entertainnt Company's transformation during the pandemic prevention period is worthy of emulation by most ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff, in his book "Corporate Strategy." He ntioned the classification of diversification strategy in this influential strategic model, which is involved in the managent guidelines and policies of many countries, leading every enterprise, big and small, to seek a place according to the developnt model of diversification strategy[4].
The praise of intimate synergies refers to enterprises using the original conditions provided by the market to produce new products that can et new consur demands, thereby driving market consumption. Vertical integration is when enterprises, based on their developnt status, vertically derive and use product industry chains to penetrate other market fields, seeking new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production scope, achieving transformation through the tamorphosis of existing technology. Overall diversification emphasizes expanding the variation in the scope of operations. Enterprises need to consider factors such as raw materials and technology related to their products and the market to expand the scope of operations[5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
In the operation process of all ga companies, the impact of diversification strategy on company performance is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. These two parts of transformation gradually produce effects to drive performance improvent. The impacts of diversification strategy are multifaceted. This paper will take the Sanqi Mutual Entertainnt Ga Company as a case study to analyze and research the impact of diversification strategy on the performance of ga companies[6].
(1) Changes in Operational Model
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also the advantage brought by the diversification strategy. The company's operations are not only involved in interactive entertainnt but also encompass the developnt and publishing of mobile and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnts, Sanqi Mutual Entertainnt Ga Company continues to innovate by keeping up with technology trends, expanding the market to include layouts in film, animation, music, VR technology, and various live streaming and pan-entertainnt businesses, thereby shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its 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 or other entertainnt industries, always facing the risk of being overwheld by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt eventually could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, it was a valuable developnt opportunity for Sanqi Mutual Entertainnt. The two companies completed restructuring of assets in various industries through multi-faceted collaboration. It is worth noting that the strategy continuously operated by Sanqi Mutual Entertainnt had already shown its initial edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual-core listed company with advanced manufacturing and modern cultural creativity parallelly operating. Correspondingly, the company operation strategy of Sanqi Mutual Entertainnt changed, covering the business scope forrly under the cultural creative industry. 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially covered the business scope under the cultural creative industry.
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