(For anti-theft purposes, will be sent later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The thods of ga dissemination are no longer restricted to rigid promotional models, and the influence of gas is gradually expanding to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, update, and improve performance with the rapid developnt of the tis. Diversification strategies precisely et the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategies, as the preferred mode of enterprise developnt, are equally applicable to gaming companies. This article explains the impact of diversification strategies 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 asure adopted by enterprises during their operations to occupy new markets and explore new markets more. It is a strategic planning used to avoid risks encountered in operating a single business and to enter new business fields with targeted preparedness. Applying diversification strategies in gaming companies can effectively enhance company performance and bring a process of transformation from quantitative to qualitative for their developnt.
1. The macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, showing a great trend of recovery in the economy and culture. On April 30, 2021, based on pre-pandemic levels in the country[1], this is particularly favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Despite the pandemic, the gaming industry was not greatly impacted, yet the inability to conduct offline activities always affects the performance of ga companies. Through the revival of the cultural industry, for most ga companies, this implies that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt[2].
From last year's pandemic outbreak to the current stabilization, the state has issued relevant policies to support the developnt of the cultural industry in financial, institutional, and financial aspects. Although the pandemic has hindered people's travel, it cannot control the speed of dissemination online. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention period, but because all enterprises want to squeeze into the online market, the competitive environnt within the cultural industry is very fierce. Many traditional offline enterprises have been eliminated by society due to the pandemic impact during this ti, but in just two years, many successfully transford cultural industries have erged. These enterprises mostly relied on diversification strategies to accelerate transformation and upgrading, and gained significant results during the pandemic prevention period when residents' consumption levels were significantly improved. They acquired more diverse developnt models and sources of inco, for example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth referencing for most ga companies[3].
2. Brief analysis and classification of diversification strategies
(a) Brief analysis of diversification strategies
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the policy guidelines of multiple countries, so today every large and small company seeks a place according to the developnt model of diversification strategies[4].
(b) Classification and aning of diversification strategies
Diversification strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different derivative modes from diversification strategies each have different anings. Horizontal diversification refers to enterprises producing new products that et user new needs using the original conditions provided by the market, thus driving market consumption; vertical integration is when enterprises vertically derive according to their developnt situation, penetrating into other market fields using the product industry chain to seek new consurs; concentric diversification emphasizes innovation based on existing technology, requiring new product production within the existing production range, realizing the entire process through the transformation of existing technology; overall diversification focuses on expanding operation range variations, requiring enterprises to contact the raw materials and technology related to their products, and market etc., to expand their operating range[5].
3. The impact of diversification strategies on ga company performance
In the operation process of all ga companies, the impact of diversification strategies on ga company performance can be said to be uniformly divided into two parts: the change of operation mode and the shift of strategic planning. From these two parts of change, the effect gradually drives company performance improvent. The influence brought by diversification strategies is multi-faceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategies on ga company performance[6].
(1) Change of operation mode
Currently, the main operation range of Sanqi Mutual Entertainnt Ga Company is very extensive, which is the advantage brought by diversification strategies. The company's business not only involves the operation of interactive entertainnt, but also undertakes the developnt and distribution of mobile gas and web gas. In recent years of developnt, the company keeps innovating by closely following technological advances of the tis, expanding the market to layout in film and animation industry, also shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live broadcast and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small company, initially not involving in the operation of ga and entertainnt industries within the industry chain. There was always a risk of being annexed by the market. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, accompanied by poor operation in later stages and market contraction, Sanqi Mutual Entertainnt eventually 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% equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multifaceted collaboration. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has always operated already showed its promising future at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to now a dual-industry listed company with advanced manufacturing and modern cultural creativity parallel. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainnt has also been changing, the business scope covered by the original cultural creative industry. In 2014, the business scope covered by the original cultural creative industry.
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