(Anti-theft, will be sent later.) Abstract: With the advancent of technology and the coverage of intelligent networks, the rise of the gaming industry in recent years has made its dissemination thods no longer confined to traditional promotional models. Gas have increasingly influenced all aspects of life, and accordingly, gaming companies need to continually integrate resources, innovate, and improve performance with the rapid developnt of the tis. A diversification strategy perfectly caters to the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategies serve as the preferable mode of developnt for enterprises and are equally applicable to gaming companies. This article explains the impact of diversification strategies on gaming company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a market strategy used by enterprises during operations to capture new markets and expand existing ones. It also allows enterprises to avoid risks encountered during single-business operations by strategically entering new business fields. Implenting diversification strategies in gaming companies can effectively enhance corporate performance, contributing to a transformation from quantitative to qualitative developnt.
1. The Macro Background of Diversification Strategy
As we enter 2021, with the country's effective control of the pandemic, people's lives are returning to normal, and the economy and culture are showing great signs of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, national cultural industry developnt had basically returned to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which accounts for a significant portion of the cultural sector. Although the pandemic did not severely impact the gaming industry, the inability to conduct offline activities has still affected gaming company performance. The warming of the cultural industry ans that for most gaming companies, this resurgence can promote and drive more gaming companies onto a path of sustainable developnt[2].
Since the outbreak of last year's pandemic to the current stabilization, the nation has issued supportive policies for cultural industry developnt from various aspects such as finance, systems, and finance. Although the pandemic has hindered people's travel, it has not controlled the speed of online network communication. More and more new dia have erged, driving cultural industry developnt during the pandemic. However, the competition environnt within the cultural industry is extrely fierce as all enterprises aim to enter the online market. Many traditional offline enterprises have not withstood the pandemic's impact and have been eliminated by society. Yet, in these short two years, many successfully transford cultural industries have erged, relying mostly on diversification strategy models for accelerated transformation and upgrading. During the pandemic control period, with a significant increase in consur levels, they have also reaped substantial benefits, gaining a more diversified developnt model and revenue channels. For instance, Sanqi Mutual Entertainnt Company's transformation during the pandemic control period is worth emulating by most gaming 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 work "Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategic model is reflected in managent strategies and policies in nurous countries, leading every enterprise, large and small, to seek a place according to diversification strategy developnt models[4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: Horizontal Diversification, Vertical Integration, Concentric Diversification, and Conglorate Diversification. The anings of the four derived models from diversification strategy vary. Horizontal Diversification refers to enterprises utilizing the market's provided original conditions to produce new products that satisfy users' new demands, thus driving market consumption; Vertical Integration refers to enterprises vertically deriving based on their developnt status, penetrating other market sectors with their product industry chains to seek new consur targets; Concentric Diversification focuses more on innovation of existing technology, requiring new product production within the original production scope, with the entire process realized through the transformation of existing technology; Conglorate Diversification emphasizes expanding operational range changes, requiring enterprises to connect raw materials, technology, market, and other factors related to their products to expand operational range[5].
3. The Impact of Diversification Strategy on Gaming Company Performance
In the operation processes of all gaming companies, the impact of diversification strategy on gaming company performance is unified into two parts: the change in operational modes and the shift in strategic planning. The effect gradually generated from these two sections drives performance improvent. The impact of diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on gaming company performance[6].
(1) Change in Operational Modes
Currently, Sanqi Mutual Entertainnt Ga Company's primary operational scope is very extensive, which is an advantage brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully owns the R&D and distribution of mobile gas and web gas. In recent developnt, the company consistently innovates, keeping up with era technology to expand its market to layout film, animation, the second dinsion, and also creating its market cultural industry chain across music, VR technology, and various generic entertainnt businesses such as live streaming.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth path in its early developnt stages. Initially, the predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, with its industrial chain not involving ga and other entertainnt industry operations until market swallowed risks were constantly present. With steady developnt, Sanqi Mutual Entertainnt Company went public in 2011, but with poor operation and market contraction in later stages, Sanqi Mutual Entertainnt eventually could not escape acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity to grasp. The two companies completed various industrial asset restructuring through multi-party cooperation. Notably, the strategy long operated by Sanqi Mutual Entertainnt began to show prominence at this ti. Sanqi Mutual Entertainnt Company transford from a pre-acquisition single modern cultural creativity company to the present dual-main business listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's corporate operation strategy underwent changes. The business scope covered by the original cultural creativity industry. In 2014, the business scope covered by Wuhu Shunrong Auto Parts Co., Ltd.'s original cultural creativity industry.
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