(Anti-plagiarism, to be released later.) Abstract: With the advancent of technology and the coverage mode of intelligent networks, the recent rise of the ga industry is widely acknowledged by the public. The dissemination thod of gas is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Accordingly, ga companies need to continuously integrate resources with the rapid developnt of the tis, innovate and upgrade, improve performance, and diversification strategy perfectly aligns with the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy is also applicable to ga companies as the preferred model for enterprise developnt. This article uses Sanqi Mutual Entertainnt Company as a case study to elucidate 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 strategy thod adopted by enterprises during their operations to capture more new markets and develop new markets, and it is also a strategic plan used by enterprises to avoid risks encountered in operating a single business and enter new business fields with targeted preparations. Applying diversification strategy to ga companies can effectively enhance company performance and bring about a process of transformation from quantitative change to qualitative change for the developnt of ga companies.
1. Macro Background of Diversification Strategy
Stepping into 2021, with the country's strong control over the pandemic, people's lives have returned to normal, and the economic culture is showing a great revival. On April 30, 2021, according to the related data published by the National Statistics Bureau, the developnt of the national cultural industry has basically returned to the pre-pandemic level [1]. This is very good news for the gaming industry, which occupies a significant portion of the cultural industry. Although the pandemic did not severely impact the gaming industry, the inability to conduct offline activities always affected the performance of ga companies. Through the recovery of the cultural industry, for most ga companies, this ans the great developnt and prosperity of the cultural industry can promote and drive more ga companies towards sustainable developnt [2].
From last year's pandemic outbreak to the current pandemic stabilization, the country has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, system, and finance. Although the pandemic blocked people's travels, 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 and control period. However, because various enterprises want to enter the online market, the competitive environnt between cultural industries is very fierce. Many traditional offline enterprises cannot withstand the impact of the pandemic and have been eliminated by society, but in this brief period of two years, many successful cultural industry transformations have erged. Most of these enterprises rely on the diversification strategy model to accelerate transformation and upgrades, and during the pandemic prevention and control period where the residents' consumption level has significantly improved, they also gained substantial results, obtained more diversified developnt models and revenue channels, such as the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period, which is worth learning from for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff, ntioned in his book "What is Corporate Strategy." The classification of diversification strategy is discussed in this book, a strategic model influencing the world involved in the managent policies of multiple countries, so today every enterprise, big or small, is seeking a place in the strategic model of diversification strategy developnt [4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall 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 new user demands, thereby driving market consumption; vertical integration is based on the enterprise's developnt situation, vertically deriving and infiltrating the product industry chain into other market fields to seek new consur targets; concentric diversification focuses more on innovation of existing technology, requiring new product production within the existing production range, achieving transformation through existing technology; overall diversification pays more attention to the expansion of business scope changes, and enterprises need to connect relevant raw materials, technology, market, and other factors to expand their business scope [5].
3. Impact of Diversification Strategy on Ga Company Performance
In the operation processes of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operation modes and shifts in strategic planning. The transformation of these two parts gradually generates effects that promote company performance enhancent. Diversification strategy brings multifaceted impacts. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as a case study [6].
(1) Changes in Operation Mode
Currently, the main operation range of Sanqi Mutual Entertainnt Ga Company is quite extensive, and this relies on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully encompasses the research and issuance of mobile gas and web gas under the Sanqi Mutual Entertainnt Ga Company. Furthermore, in recent years of developnt, keeping pace with technological advancents and constant innovation, the market has expanded to layout film and television and animation subcultures, and also creates market cultural industry chains belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live streaming and entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth path in early developnt. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of gas and other entertainnt industries, always facing the risk of being swallowed up by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but with poor operations later and market contraction, Sanqi Mutual Entertainnt finally did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration, and it is worth ntioning that Sanqi Mutual Entertainnt's operation strategy, which has been running constantly, has already begun to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to now an advanced manufacturing and modern cultural creative dual-main industry listed company. Correspondingly, the operating strategy of Sanqi Mutual Entertainnt Company is also changing, covering the original cultural creative industry business scope. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of the cultural creative industry.
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