This Lord is Very Scientific-Chapter 643 - 575 "Phenomenology of Spirit

(Anti-theft, to be published tomorrow.) Abstract: With the advancement of technology and the pervasive coverage of intelligent networks, the rise of the game industry in recent years has been evident to all. The methods of game dissemination are no longer confined to rigid promotional modes, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies must continuously integrate resources, innovate, and enhance performance in line with the rapid development of the era. A diversification strategy precisely aligns with the planning needs and development goals within the game industry. Against the backdrop of economic globalization, a diversification strategy, as the preferred model for enterprise development, also applies to game companies. This article uses Sanqi Mutual Entertainment Company as an example to illustrate the impact of diversification strategies on the performance of game companies.

Keywords: Diversification strategy; Game companies; Performance; Impact; Sanqi Mutual Entertainment Company

A diversification strategy is a market strategy employed by enterprises during operations to gain and explore new markets. It is also a strategic plan used by enterprises to mitigate risks encountered in singular business operations and to enter new business fields with focus and preparation. The practical application of diversification strategies in game companies can effectively enhance company performance, bringing about a transformation from quantitative to qualitative changes in the development of game companies.

1. The Macroeconomic Background of Diversification Strategy

Entering 2021, under the effective control of the pandemic by the country, people's lives are back on track, and the economic and cultural scene is presenting a great recovery. On April 30, 2021, according to 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 occupies a significant portion of the cultural industry. Although the pandemic did not severely impact the game industry, the inability to conduct offline activities has always affected the performance of game companies. The revival of the cultural industry suggests to most game companies that the great development and prosperity of the cultural industry can promote more game companies to embark on a path of sustainable development [2].

From the outbreak of the pandemic last year to the current stabilization, the country has introduced related policies from financial, institutional, and financial aspects to support the development of the cultural industry. While the pandemic has halted people's travel, it cannot control the speed of online network dissemination. The emergence of more and more new media has driven the development of the cultural industry during the pandemic prevention period. However, as all enterprises strive to enter the online market, the competitive environment within the cultural industry has become very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society during this time. Yet, in just two short years, many successfully transformed cultural industries have emerged, relying on a diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention period, when residents' consumption levels significantly increased, these companies have also reaped substantial gains, acquiring more diversified development models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth emulating for most game companies [3].

2. Brief Analysis and Classification of Diversification Strategy

(A) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff, in his book "Corporate Strategy." The classification of diversification strategy mentioned in this world-influencing strategic model is reflected in the management policies of many countries, leading to every enterprise, large or small, seeking a place according to the developmental model of diversification strategy today [4].

(B) The Classification and Meaning of Diversification Strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different models derived from diversification strategy have distinct meanings: horizontal diversification refers to businesses using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption; vertical integration is when enterprises vertically derive based on their development status, using the product industry chain to penetrate other market fields to seek new consumer targets; concentric diversification focuses more on innovation with existing technologies, requiring the production of new products within the existing production range, the entire process is realized through the transformation of original technologies; conglomerate diversification emphasizes expanding operational range changes, linking factors such as raw materials, technology, and market related to self-products for operational range expansion [5].

3. The Impact of Diversification Strategy on Game Company Performance

It can be said that during the operation of all game companies, the impact of diversification strategy on game company performance can be uniformly divided into two parts: changes in operational mode and shifts in strategic planning. The effects gradually generated from these two parts lead to the enhancement of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on game company performance with Sanqi Mutual Entertainment Game Company as an example [6].

(1) Changes in Operational Mode

Currently, the main operating range of Sanqi Mutual Entertainment Game Company is quite extensive, thanks to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainment but also fully handles the research and distribution of mobile and web games under its subsidiary, and continuously innovates, keeping pace with contemporary technology in recent developments. The company has expanded the market to include the layout of film, anime ACG, as well as shaping its market cultural industry chain in music, VR technology, and various live broadcast and general entertainment businesses.

In 1995, Sanqi Mutual Entertainment Game Company was established, but the development path at first was not smooth. The precursor of Sanqi Mutual Entertainment Game Company was a small enterprise, which initially did not involve the operation of games and other entertainment industries in its industrial chain. There was always the risk of being swallowed by the market. However, relying on the stable development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. Despite this, due to subsequent poor operations and market contraction, Sanqi Mutual Entertainment eventually could not escape being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% stake in Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was officially acquired, this was a development opportunity worth seizing for Sanqi Mutual Entertainment. The two companies completed asset restructuring of various industries through extensive collaboration. It is noteworthy that Sanqi Mutual Entertainment's previously operated strategy began to show its prowess at this time. Sanqi Mutual Entertainment Company transitioned from being a single modern cultural creative company before the acquisition to a listed company currently operating with dual main businesses of advanced manufacturing and modern cultural creativity. Corresponding to this, Sanqi Mutual Entertainment's company operation strategy is undergoing changes, and the business scope of the original cultural creative industry