(Anti-theft, to be released later.) Abstract: With the progress of technology and the coverage of smart networks, the rise of the gaming industry in recent years is evident to the public. The ways of spreading gas are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, iterate, and improve performance as the era progresses rapidly. A diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy as a preferred enterprise developnt model is also applicable to ga companies. This article illustrates the impact of diversification strategy on ga company performance with Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans that enterprises adopt in the process of operation to acquire more new markets and develop new markets. It is also a strategic plan that enterprises need to avoid risks encountered in operating a single business, entering new fields with focus and preparation. Applying diversification strategy in ga companies can effectively enhance company performance, bringing developnt changes from quantitative to qualitative.
1. Macroscopic background of diversification strategy
Entering 2021, with the country's effective control of the pandemic, people's lives return to normal, and economic culture presents a great recovery scene. On April 30, 2021, according to the data released by the National Bureau of Statistics, the national cultural industry developnt basically recovered to pre-pandemic levels [1]. This is very advantageous news for the gaming industry, which occupies a large proportion in the cultural industry. Although the pandemic's arrival didn't greatly affect the gaming industry, the inability to conduct offline activities always affects the performance of ga companies. The warming of the cultural industry ans, for most ga companies, that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on continuous developnt paths [2].
From last year's outbreak of the pandemic to the current stability, the country has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. Although the pandemic has hindered people's outings, it cannot control the speed of online network spreads. More and more new dia appeared, driving the developnt of the cultural industry during the pandemic prevention period. However, due to the competition among enterprises vying to enter the online market, the competition environnt between cultural industries is very fierce. Many traditional offline enterprises couldn't withstand the pandemic's impact and were eliminated by society. But within these short two years, many successfully transford cultural industries erged, and most of these enterprises accelerated transformation and upgrading by relying on diversified strategy modes, gaining fruitful results in the pandemic prevention period where residents' consumption levels significantly increased, acquiring more diverse developnt modes and inco channels, for example, Sanqi Mutual Entertainnt Company's transformation during the pandemic prevention period is worth most ga companies' reference [3].
2. Overview and classification of diversification strategy
(a) Overview of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the founder of strategic managent. He ntioned the classification of diversification strategy in his book, "What is Corporate Strategy." This strategy mode, influential worldwide, is involved in many countries' managent policies, so nowadays every enterprise, big or small, strives for a place according to the developnt mode of diversification strategy [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 anings of the four modes derived from diversification strategy are also different. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is enterprises deriving vertically based on their developnt situation, using product industry chains to penetrate other market fields to seek new consumption objects; concentric innovation needs to produce within the original production scope, the whole process is realized through the transformation of original technology; overall diversification involves changes, enterprises need to link themselves with related raw materials and technology and market factors to expand business scope [5].
3. Impact of diversification strategy on ga company performance
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga company performance is divided into two parts: the change in operational modes and the shift in strategic planning. The effects gradually developed from these two parts drive the improvent of company performance. The impact of diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in operational modes
At present, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operations but also Sanqi Mutual Entertainnt Ga Company singularly handles the research, developnt, and distribution of mobile gas and web gas. In recent years, keeping pace with the tis and technology, the market has expanded to include film and ani, concurrently shaping Sanqi Mutual Entertainnt Ga Company's market culture industry chain in music, VR technology, and various live entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company didn't have smooth roads in early developnt. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, Sanqi Mutual Entertainnt's industry chain didn't involve ga and other entertainnt industry operations, and there was always the risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Despite subsequent operational difficulties and market compression, Sanqi Mutual Entertainnt ultimately couldn't escape the fate of acquisition.
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 developnt opportunity for Sanqi Mutual Entertainnt. The two companies completed various industrial asset restructurings through multi-party cooperation. It is worth ntioning that the strategy Sanqi Mutual Entertainnt had been operating showed its edge at that ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a dual main business listed company integrating advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also changed. The business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. allocated the business scope covered by the original cultural creative industry.
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