This Lord is Very Scientific-Chapter 648 - 580: Unprecedented Hot Discussion! The Debate Concludes!

(Anti-theft, to be sent tomorrow morning.) Abstract: Accompanied by technological advancements and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been witnessed by the public. The dissemination of games is no longer confined to rigid promotional methods, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate and iterate, and improve performance in line with the rapid development of the times. A diversification strategy perfectly meets the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, a diversification strategy, as the preferred model for enterprise development, is also applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of a diversification strategy on game company performance. 𝑓𝓇𝘦ℯ𝘸𝘦𝑏𝓃𝑜𝘷ℯ𝑙.𝑐𝑜𝓂

Keywords: diversification strategy; game company; performance; impact; Sanqi Mutual Entertainment

Diversification strategy is a market strategy tool adopted by enterprises in the process of operation to capture more new markets and develop new markets, and it is also a strategic plan used by companies to avoid risks encountered during the operation of a single business, by entering new business fields with specific targeting and preparation. Applying diversification strategy to game companies can effectively improve company performance and bring about a process of qualitative change from quantitative change to the development of game companies.

1. The macro background of diversification strategy

Entering 2021, with the effective control of the epidemic by the state, people's lives are back on track, and the economy and culture are showing a great trend of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically recovered to the pre-epidemic level [1]. For the gaming industry, which holds a significant proportion of the cultural industry, this is very good news. Although the arrival of the pandemic did not have a major impact on the gaming industry, the inability to carry out offline activities has always affected the performance of gaming companies. The warming of the cultural industry represents for most gaming companies that the great development and prosperity of the cultural industry can promote more gaming companies to embark on a path of sustainable development [2].

From last year's outbreak to the current stabilization of the epidemic, the state has issued relevant policies from various aspects including finance, systems, and finance to support the development of the cultural industry. Although the epidemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during the epidemic prevention and control 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 epidemic and were eliminated by society, but in the short span of two years, many successfully transformed cultural industries have also emerged. These companies mainly accelerated their transformation and upgrading relying on diversification strategic models, and received considerable gains during the epidemic prevention and control period where consumer levels significantly improved, obtaining more diverse development models and revenue streams. For example, the transformation made by Sanqi Mutual Entertainment during the epidemic prevention and control period is worth emulating for most gaming companies [3].

2. Brief analysis and classification of diversification strategy

(1) Brief analysis of diversification strategy

Diversification strategy was proposed by Igor Ansoff, the progenitor of strategic management, in his book "Corporate Strategy," which discusses the classification of diversification strategy. This world-influencing strategic model is involved in the management policy preferences of many countries, leading to every enterprise, big or small, seeking a foothold following the development model of diversification strategy today [4].

(2) Classification and meaning of diversification strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different models derived from diversification strategy also have different meanings. Horizontal diversification refers to companies utilizing the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption. Vertical integration refers to companies deriving vertically based on their development situation, using the product industry chain to penetrate other market fields to seek new consumption targets. Concentric diversification focuses more on the innovation of original technologies, requiring the production of new products within the original production range, achieving the entire process through the transformation of existing technologies. Overall diversification emphasizes the expansion of business scope changes, requiring companies to connect with factors related to their products, such as raw materials, technology, and markets, to expand their business scope [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: changes in the operating model and shifts in strategic planning. From these two parts of the reform, gradually producing effects to boost company performance, the impact brought by a diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of a diversification strategy on game company performance [6].

(1) Changes in operating model

As it stands, the main operating scope of Sanqi Mutual Entertainment Game Company is extremely broad, which is an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but Sanqi Mutual Entertainment Game Company also handles the development and release of mobile games and web games. Moreover, in recent years, it has kept up with the times in technology and continuously innovated, expanding the market to include film and animation niches, and shaping the market culture industry chain belonging to Sanqi Mutual Entertainment Game Company through various entertainment businesses such as music, VR technology, and various live broadcasts.

Sanqi Mutual Entertainment Game Company was established in 1995, but its early development journey was not smooth. Initially, the industry chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, always facing the 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. Accompanied by poor late-stage operations and market contraction, Sanqi Mutual Entertainment eventually did 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 it was nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. With multi-party cooperation, the two companies completed asset restructuring in various industries. It is worth mentioning that the exhibition strategy that Sanqi Mutual Entertainment has always operated was already showing initial signs of success at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creativity company before the acquisition into a dual-main business listed company parallel in advanced manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy experienced changes, with the original business scope of cultural creativity industry...