This Lord is Very Scientific-Chapter 632 - 564 Simple and Brutal Treatment Method
(Anti-theft, post in the evening.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the game industry in recent years has been evident to the public. The way games are promoted is no longer confined to rigid publicity modes, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, and improve performance to keep up with the rapid development of the times. Diversification strategy precisely caters to the planning needs and development goals within the game industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of enterprise development, is also applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategy on the performance of game companies.
Keywords: Diversification strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment Company
Diversification strategy is a market strategy means that enterprises adopt during the operation process to occupy more new markets and explore new market potentials. It also helps companies to avoid the risks encountered during single business operations. This strategic planning involves targeted and prepared entry into new business fields. Applying diversification strategy practically to game companies can effectively enhance company performance, bringing about a process from quantitative to qualitative changes in the development of game companies.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives are back on track, and the economic culture is showing signs of revival. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to pre-pandemic levels [1]. This is very favorable news for the game industry, which accounts for a large proportion of the cultural industry. Although the advent of the pandemic did not significantly impact the game industry, the inability to hold offline activities continuously affects the performance of game companies. The recovery of the cultural industry means that new development and prosperity can promote more game companies to embark on the path of sustainable development [2].
From the outbreak of the pandemic last year to the current stabilization, the state has introduced relevant policies to support the development of the cultural industry from multiple aspects, including finance, systems, and finance. Although the pandemic hindered people's travel, it couldn't control the spread speed of the online network. More and more new media are emerging, driving the development of the cultural industry during pandemic prevention and control. However, because every company wants to enter the online market, the competitive environment within the cultural industry is quite intense. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. But, within these short two years, many successfully transformed cultural industries have emerged, and most of these enterprises relied on diversification strategy models to accelerate transformation and upgrades. During the pandemic prevention period, with significant improvement in residents' consumption levels, these enterprises also reaped good results, obtaining more diverse development models and income channels. For example, the transformation of Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning for most game 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 management, Igor Ansoff. In his book "Corporate Strategy," he mentions the classification of diversification strategies. This world-influencing strategic model has been involved in many countries' management guidelines and policies, leading to every enterprise seeking a foothold according to the diversification strategy development model today [4].
(2) Classification and Meaning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four modes derived from diversification strategy have different meanings. Horizontal diversification refers to the enterprise's use of the original conditions provided by the market to produce new products that can meet user needs, thereby driving market consumption. Vertical integration is an enterprise based on its development situation, vertically extending, using the product industry chain to penetrate other market fields to seek new consumer targets. Concentric diversification focuses more on the innovation of existing technology, requiring production of new products within the original production range, achieving through the transformation of existing technology. Conglomerate diversification emphasizes expanding the operating range, where enterprises need to connect relevant raw materials, technology, and market factors related to their products to expand the operating range [5].
3. The Impact of Diversification Strategy on Game Company Performance
It can be said that in the operation process of all game companies, the impact of diversification strategy on game company performance is uniformly divided into two parts: the change of operating mode and the transfer of strategic planning. The reforms in these two parts gradually produce effects that drive company performance enhancement. The impact of diversification strategy is multi-faceted. This paper will use Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on game company performance [6].
(1) Change in Operating Mode
Currently, the main operational range of Sanqi Mutual Entertainment Game Company is quite extensive. This is also an advantage brought by the diversification strategy. The company's business not only involves interactive entertainment operations but also covers the development and distribution of mobile and web games under Sanqi Mutual Entertainment Game Company. Additionally, in recent years of development, closely following technological advancements, the company has continuously innovated, expanding the market layout to include film and animation, also shaping its market cultural industry chain in music, VR technology, and various live broadcast pan-entertainment businesses.
Sanqi Mutual Entertainment Game Company was founded in 1995. However, the early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise and did not initially involve the operation of games and other entertainment industries in its industrial chain, constantly facing the risk of being swallowed by the market. But relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. Nevertheless, with poor operations in later stages and market contraction, Sanqi Mutual Entertainment 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 Entertainment Technology Co., Ltd. Although the acquisition was nominally, it presented Sanqi Mutual Entertainment with a worthwhile development opportunity. Under multi-party collaboration, the two companies completed the asset restructuring of various industries. Notably, the strategic approach that Sanqi Mutual Entertainment has always operated was beginning to show signs of success. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creative company before being acquired to a dual-main-business listed company, where advanced production manufacturing and modern cultural creativity coexist. Correspondingly, Sanqi Mutual Entertainment's company operation strategy also underwent changes, as the scope of business covered by the original cultural creative industry...
