(Anti-theft, will be released 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 thods of ga dissemination are no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Accordingly, ga companies also need to continually integrate resources, innovate, and improve performance amid the rapid developnt of the tis. A diversification strategy perfectly ets the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, the diversification strategy, as the preferred model for corporate developnt, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of a diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy and thod employed by companies in their operations to capture and develop new markets. It is also a strategy necessary for companies to avoid risks encountered while operating a single business by strategically entering new business areas with targeted preparations. Applying a diversification strategy to a ga company can effectively improve company performance, leading to a transformation from quantitative to qualitative developnt for the ga company's growth.
1. Macro Background of Diversification Strategy
As we enter 2021, with effective control of the pandemic by the state, people's lives have returned to normal, and cultural and economic activities have shown a great trend of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a significant proportion of the cultural industry. Although the pandemic did not significantly impact the ga industry, the inability to conduct offline activities always affected the performance of ga companies. The recovery of the cultural industry indicates for most ga companies that the great developnt and prosperity of the cultural industry can promote more ga companies to enter a path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization, the country has introduced relevant policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's travel, it could not control the spread speed of the online network. More and more new dia erged, promoting the developnt of the cultural industry during the pandemic prevention and control period. Due to the intense competition environnt in the cultural industry caused by various companies striving to enter the online market, many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, in this short period of two years, many successfully transford cultural industries erged. Most of these enterprises relied on a diversification strategy to accelerate transformation and upgrading, gaining substantial achievents amid significantly increased residential consumption levels during the pandemic prevention period. They acquired more diversified developnt models and inco channels. For instance, the transformation carried out by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worthy of reference by most ga companies [3].
2. Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategy model is involved in the managent guidelines and policies of multiple countries, to the extent that today every large and small enterprise is seeking a place using the developnt model of the diversification strategy [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: concentric diversification, conglorate diversification, horizontal diversification, and vertical integration. Each of these derived from the diversification strategy has different anings. Horizontal diversification refers to enterprises producing new products that can et new user demands using the original market conditions, thus driving market consumption. Vertical integration is when an enterprise, based on its developnt status, vertically derives and penetrates its product industry chain into other market areas to seek new consurs. Concentric diversification emphasizes innovation in existing technologies and requires the production of new products within the existing production scope, achieving this through the transformation of existing technology. Conglorate diversification focuses more on expanding the scope of operation changes, needing enterprises to connect related raw materials, technologies, and market factors to expand their operating range [5].
3. Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operation process of all ga companies, the impact of a diversification strategy on performance is uniformly divided into two parts: changes in the operation model and the shift in strategic planning. These two parts of transformation gradually produce effects that drive the improvent of company performance. The impact of a diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of a diversification strategy on the performance of ga companies [6].
(1) Change in Operation Model
So far, the main operating range of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by a diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also fully undertakes the research and distribution of mobile and web gas. In recent developnts, the company has kept pace with technology, continually innovating, and expanding the market into the fields of film, animation, and the second dinsion. It also constructs its market cultural industry chain in music, VR technology, various live broadcasts, and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the initial developnt path was not smooth. The company's predecessor was a small enterprise, and its industrial chain initially did not involve the operation of gas and other entertainnt industries, making it constantly at risk of being swallowed by the market. However, through the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with poor operations and market contraction in later periods, Sanqi Mutual Entertainnt still couldn't 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 a developnt opportunity worth seizing. Through collaboration, the two companies completed asset restructuring across various industries. Notably, the strategic operations consistently operated by Sanqi Mutual Entertainnt had begun to show promise at this point. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy also changed, affecting the business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. covered the business scope of the previous cultural creative industry.
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