This Lord is Very Scientific-Chapter 644 - 576: Masterpiece! Spirit, Consciousness, and Absolute Spirit!

(Anti-theft, will be published tomorrow.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the game industry in recent years has been witnessed by the public. The way games are disseminated is no longer confined to rigid promotional modes, and the influence of games has gradually expanded to various aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate, iterate, and improve performance amid the rapid development of the times. The diversification strategy perfectly caters to the planning needs and development goals within the gaming industry. Under the background of economic globalization, as a preferred mode of enterprise development, the diversification strategy is equally applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of the diversification strategy on the performance of game companies.

Keywords: Diversification Strategy; Game Company; Performance; Impact; Sanqi Mutual Entertainment Company

The diversification strategy is a market strategy measure that enterprises adopt during operation to occupy more new markets and explore new markets. It is also a strategic plan for an enterprise to avoid risks encountered in operating a single business and to enter new business fields with targets and preparations. The practical application of the diversification strategy to game companies can effectively improve company performance, bringing about a transformation in the development of game companies from quantitative change to qualitative change. 𝘧𝓇ℯ𝑒𝓌𝑒𝑏𝓃𝘰𝘷𝘦𝘭.𝒸ℴ𝓂

1. The Macro Background of the Diversification Strategy

Entering 2021, with the country's effective control over the pandemic, people's lives have returned to normal, and the economic and cultural landscape is showing a great recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry had basically returned to the pre-pandemic level [1]. This is very favorable news for the game industry, which occupies a large proportion of the cultural industry. Although the advent of the pandemic did not significantly impact the game industry, the inability to conduct offline activities always affected the performance of game companies. The recovery of the cultural industry means that the great development and prosperity of the cultural industry can promote more game companies to embark on a path of sustainable development for most game companies [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 development of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of online networks. The emergence of an increasing number of new media drove the development of the cultural industry during the epidemic prevention period. However, the competitive environment within the cultural industry has become very fierce due to enterprises' rush to enter the online market. Many traditional offline companies have been eliminated by society in this short two years under the influence of the pandemic. Still, many cultural industries have successfully transformed and emerged during this period. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, also gaining abundant harvests during the epidemic prevention period when the consumption level of residents significantly increased. They gained more diversified development models and capital income channels. For example, the transformation made by Sanqi Mutual Entertainment during the epidemic prevention period is worth most game companies learning from [3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

The diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff, in his book "Corporate Strategy," which mentioned the classification of diversification strategy. This world-influencing strategic model has been involved in the management policies in multiple countries, leading every size of the enterprise to seek a place according to the development model of the diversification strategy [4].

(2) Classification of Diversification Strategy and Its Implications

The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different models derived from the diversification strategy each have different meanings. Horizontal diversification refers to enterprises using the original market conditions to produce new products that can meet new user needs, thereby driving market consumption. Vertical integration refers to enterprises, based on their development situation, vertically derive and use product industry chains to infiltrate other market fields for new consumer objects. Concentric diversification focuses more on innovation of existing technology, requiring the production of new products within the original production scope. The whole process is realized through the transformation of existing technology. Conglomerate diversification focuses more on expanding the operational scope, where enterprises need to connect with related raw materials, technology, and market factors of their products to expand their operational scope [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 the diversification strategy on game company performance is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. From these two parts, changes gradually produce effects driving the enhancement of company performance. The impact brought by the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to study and analyze the impact of the diversification strategy on the performance of game companies [6].

(1) Changes in Operational Model

Currently, the primary operational scope of Sanqi Mutual Entertainment Game Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business is not only involved in the operation of interactive entertainment. At the same time, the research and publishing of mobile games and web games under Sanqi Mutual Entertainment Game Company are also handled entirely. Moreover, in recent years of development, the company has continued to innovate by keeping pace with technology, expanding the market layout to film and anime, and shaping Sanqi Mutual Entertainment Game Company's market cultural industry chain in music, VR technology, and various live broadcast pan-entertainment businesses.

In 1995, Sanqi Mutual Entertainment Game Company was established, but the early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainment did not involve operations in the game and other entertainment industries, with a constant risk of being annexed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with poor subsequent operations and market contraction, Sanqi Mutual Entertainment still did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although the acquisition was nominal, it was an opportunity for development worth seizing for Sanqi Mutual Entertainment. Under multi-party collaboration, the two companies completed asset restructuring across various industries. It is worth mentioning that the expansion strategy that Sanqi Mutual Entertainment has always operated had already begun to show its potential at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to a dual-main business listed company that runs advanced manufacturing and modern cultural creativity in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment also underwent changes. The business scope under the cultural creative industry initially covered.