This Lord is Very Scientific-Chapter 645 - 577: The Great Path of Pursuing Truth! (Additional Update 4)

(Anti-theft measure, will be released tomorrow.) Abstract: With the advancement of technology and the coverage model of smart networks, the rise of the gaming industry in recent years has been witnessed by the public. The dissemination methods of games 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 iterate, and improve performance in line with the rapid development of the era. A diversified strategy precisely aligns with the planning needs and development goals within the gaming industry. In the context of economic globalization, a diversified strategy as the primary mode for corporate development is also applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversified strategies on the performance of game companies. 𝘧𝘳𝘦ℯ𝓌𝘦𝒷𝘯𝑜𝑣𝘦𝓁.𝒸𝘰𝓂

Keywords: Diversified strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment Company

A diversified strategy is a market strategic approach adopted by a company during its operational process to occupy more new markets and expand existing ones. It is also a strategic blueprint that helps an enterprise avoid risks encountered in operating a single business by selectively and proactively entering new business fields. Applying a diversified strategy to a game company can effectively improve the company's performance, bringing the company's development from quantitative to qualitative changes.

1. Macroscopic Background of Diversified Strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normalcy, and the economy and culture have shown a great momentum of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry had basically returned to pre-pandemic levels [1]. For the gaming industry, which holds a large proportion in the cultural sector, this is very favorable news. Although the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities has always affected the performance of game companies. The recovery of the cultural industry means, for most game companies, that the significant development and prosperity of the cultural industry can promote more game companies to embark on a path of continuous development [2].

Since the outbreak of last year's pandemic to the current stabilization, the state has issued 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 curb the spread speed of the online network. The emergence of more and more new media propelled the development of the cultural industry during the pandemic prevention and control period. However, the fierce competition in the cultural industry is caused by many enterprises eager to enter the online market. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. Nevertheless, in just these two years, many cultural industries successfully transformed, mostly relying on diversified strategy models to accelerate transformation and upgrading, and also yielded significant gains during the pandemic prevention and control period with significantly improved consumer levels, acquiring more diversified development models and funding income channels, such as the transformation Sanqi Mutual Entertainment made during the pandemic prevention and control period, which is worth emulating by most game companies [3].

2. Analysis and Classification of Diversified Strategy

(a) Simple Analysis of Diversified Strategy

The diversified strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversified strategies. This globally influential strategic model has been involved in the management policies of many countries, leading every large and small enterprise today to strive for a place according to the developing model of diversified strategies [4].

(b) Classification and Meaning of Diversified Strategy

Diversified strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The four different models derived from diversified strategies also have various meanings. Horizontal diversification refers to the enterprise utilizing the original conditions provided by the market to produce new products that meet new user demands, thereby driving market consumption. Vertical integration means the enterprise develops vertically based on its development status, penetrating other market areas via the product industry chain to seek new consumers. Concentric diversification focuses more on the innovation of existing technologies, which require the production of new products within the original production range, realizing the entire process through the transformation of existing technologies. Comprehensive diversification emphasizes more on the expansion of business scope changes, requiring the enterprise to expand the business scope in connection with factors related to its own products such as raw materials, technology, and market [5].

3. Impact of Diversified Strategy on the Performance of Game Companies

In the operational process of all game companies, the impact of the diversified strategy on company performance is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. Through changes in these two parts, effects gradually produce and drive the company's performance improvement. The impact brought by diversified strategies is multifaceted. This paper will analyze and study the impact of diversified strategies on the performance of game companies using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Changes in the Operational Model

Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is quite broad. This also relies on the advantages brought by diversified strategies. The company's business not only involves the operation of interactive entertainment, but also independently handles the research and distribution of mobile games and web games. In recent developments, it has continuously innovated by keeping up with the era's technology, expanding the market layout into film, animation, and the two-dimensional space, and shaping its market culture industry chain in music, VR technology, and various live entertainment businesses.

Sanqi Mutual Entertainment Game Company was founded in 1995. However, the development path in the early stage was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, initially not involved in the operation of industries like gaming and entertainment, constantly facing the risk of being devoured by the market. Nonetheless, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. Yet, with poor management in the later period and contraction in the market, Sanqi Mutual Entertainment 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 Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. Both companies completed asset restructuring in various industries through multilateral cooperation. It's noteworthy that the strategy that Sanqi Mutual Entertainment had been operating began to show its prominence at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before being acquired into a dual-focused listed company engaged in advanced manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment also underwent changes, with the original cultural creative industry covering the business scope.