(Anti-theft, will release later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The mode of ga dissemination is no longer confined to rigid promotional thods, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, update and improve performance with the rapid developnt of the tis. A diversification strategy precisely ets the planning needs and developnt objectives within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This paper uses Sanqi Mutual Entertainnt as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy adopted by enterprises to capture new markets and expand into new ones during their operations. It is also a strategic plan used by enterprises to avoid risks encountered in operating a single business and to enter new business fields with focus and preparation. Applying the diversification strategy to ga companies can effectively improve company performance, and bring a process of quantifiable to qualitative change in the developnt of ga companies.
1. Macro background of diversification strategy
Stepping into 2021, under the strong control of the pandemic by the state, people's lives are back on track, and the economic and cultural landscape presents a great recovery. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the national cultural industry developnt basically returned to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming of the cultural industry 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 the outbreak of the pandemic last year to the current stability, the state has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, institutions, and finance. Although the pandemic blocked people's travel, it could not control the speed of online network dissemination. More and more new dia appeared, promoting the cultural industry's developnt during the pandemic prevention period. However, since all enterprises want to squeeze into the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But in this short span of two years, many successfully transford cultural enterprises have erged, relying on the diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention period, when residents' consumption levels increased significantly, they also reaped substantial benefits, obtaining more diverse developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating for most ga companies [3].
2. Simple analysis and classification of diversification strategy
(1) Simple analysis of diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent policies and strategies of many countries, so that today every size of enterprise is seeking a place in accordance with the developnt model of diversification strategy [4].
(2) Classification and implication of diversification strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of the four different models derived from the diversification strategy are also different. Horizontal diversification refers to the developnt of new products that et users' new needs by the enterprise using the original conditions provided by the market, thereby driving market consumption. Vertical integration ans that the enterprise extends vertically according to its developnt situation, penetrating other market fields through the product industry chain to seek new consurs. Concentric diversification places more emphasis on the innovation of original technologies, requiring the production of new products within the original production range, and the entire process is realized through the transformation of original technologies. Conglorate diversification places more emphasis on expanding business scope variation. The enterprise needs to contact factors related to its products, such as raw materials and technology, as well as the market, to expand its business scope [5].
3. Impact of diversification strategy on ga company performance
In the operation of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. Effects gradually erge from these two parts of transformation to drive company performance improvent. The impact of the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of the diversification strategy on ga company performance [6].
(1) Changes in the operation model
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also thanks to the advantages brought about by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully covers the developnt and distribution of mobile gas and web gas. In recent years, keeping pace with the tis' technology and innovation, it has expanded the market to layout film and ani subculture, and created Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live broadcast and pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt sectors, always at risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but with later poor operations and market contraction, Sanqi Mutual Entertainnt ultimately 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, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing. The two companies completed the restructuring of various industrial assets through multi-party collaboration. It is worth ntioning that Sanqi Mutual Entertainnt's ongoing developnt strategy had already begun to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual-main business listed company of advanced production manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy was changing, the business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first covered the business scope of the cultural creative industry.
User Comments
0 comments from readers