(Anti-theft, will be sent at the ti.) Abstract: With the progress of technology and the coverage model of smart networks, the rise of the ga industry in recent years is evident to the public. The way of spreading gas is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and improve performance with the rapid developnt of the era. A diversification strategy fits well with the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This article explains the impact of diversification strategy on ga company performance by taking 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 course of operation to occupy more new markets and explore new markets. It is also a strategic plan adopted by enterprises to enter new business fields with targeting and preparation to avoid risks encountered in the operation of a single business. Practically applying diversification strategy to ga companies can effectively improve company performance, bringing about a process from quantitative change to qualitative change for the developnt of ga companies.
1. Macro background of the diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscape shows a promising 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 has basically returned to pre-pandemic levels[1], which is extrely beneficial news for the ga industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic did not cause a significant impact on the gaming industry, the inability to conduct offline activities always affects ga companies' performance. With the warming of the cultural industry, for most ga companies, this ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt[2].
From last year's outbreak of the pandemic to the current stabilization, the state has issued relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travels, it cannot control the speed of online network spread. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, because various enterprises want to squeeze into the online market, the competitive environnt among the cultural industries is extrely fierce. Many traditional offline enterprises have been eliminated by society due to the impact of the pandemic. But in just two years, many cultural industries have successfully transford, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrade. During the pandemic prevention period, where the resident consumption level has significantly increased, they have also gained a lot and obtained more diversified developnt models and inco channels, such as the transformation Sanqi Mutual Entertainnt Company made during the pandemic prevention period, which is worth emulating by most ga companies[3].
2. Brief analysis and classification of the diversification strategy
(a) Brief analysis of the diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff, in his book "What is Corporate Strategy," which ntioned the classification of diversification strategy. This globally influential strategic model is encompassed in the managent policies of multiple countries, so that today every big and small enterprise is seeking a place in accordance with the diversification strategy developnt model[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 different 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' vertical derivation based on their developnt situation, utilizing the product industry chain to penetrate other market fields to seek new consur objects; Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production scope, realizing the transformation through the tamorphosis of existing technology; Overall diversification places more emphasis on expanding operational scope changes, enterprises need to connect factors such as raw materials and technology related to their products and markets to expand operational scope[5].
3. Impact of diversification strategy on ga company performance
In the operation process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operation mode and transfer of strategic planning. From the evolution of these two parts, effects gradually arise and drive the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance[6].
(1) Changes in the operational mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also undertakes the research and developnt and distribution of mobile gas and web gas. In recent years, it has continued to innovate closely following the technology of the tis, expanding the market to layout film and television and ani ACG (Ani, Comics, Gas). It has also shaped its 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 in its early developnt road, it was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at first, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of ga and other entertainnt industries, facing the risk of being engulfed by the market at any ti. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with subsequent poor operation and market contraction, Sanqi Mutual Entertainnt eventually did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60 percent of the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was technically acquired, this was a developnt opportunity worth grasping for Sanqi Mutual Entertainnt. The two companies completed the asset restructuring of various industries in multi-cooperation. It is worth ntioning that the exhibition strategy continuously operated by Sanqi Mutual Entertainnt was already showing initial success. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company to the current dual-main business listed company with advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy was also changing. Initially, the business scope covered by the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially covered the business scope of the cultural creative industry.
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