This Lord is Very Scientific-Chapter 651 - 583: You Shall Be Great!

(Anti-theft, will be published later.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The means of disseminating games no longer adhere to rigid promotional methods, and the influence of games has gradually expanded to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, and enhance performance in response to the rapid development of the times. Diversified strategies precisely cater to the planning needs and developmental goals within the gaming industry. Against the backdrop of economic globalization, diversified strategies as the preferred development model for enterprises are equally applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversified strategies on gaming company performance.

Keywords: Diversified strategy; Gaming companies; Performance; Impact; Sanqi Mutual Entertainment

Diversified strategy is a market strategy approach taken by enterprises during their operations to capture new markets and explore new markets. It is also a strategic planning method an enterprise uses to avoid risks encountered during the operation of a single business and to strategically and preparedly enter new business fields. Applying diversified strategies to gaming companies can effectively enhance company performance, bringing a transformation from quantitative to qualitative changes in the development of gaming companies.

1. Macro Background of Diversified Strategy

Entering 2021, with the effective control of the pandemic by the state, people's lives returned to normalcy, and the economic and cultural situation presented a great recovery. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the development of the national cultural industry basically recovered to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which accounts for a significant portion of the cultural industry, even though the pandemic did not severely impact the gaming industry. The inability to conduct offline activities has always affected the performance of gaming companies. Through the warming of the cultural industry, it means for most gaming companies that the great development and prosperity of the cultural industry can promote and drive more gaming companies to embark on a path of sustainable development [2].

From last year's pandemic outbreak to the current stabilization, the state has introduced relevant policies in various areas such as finance, systems, and finance to support the development of the cultural industry. Although the pandemic obstructed people's travel, it could not control the spread of the online network. More and more new media have emerged to drive the development of the cultural industry during the pandemic control period. However, as all companies are striving to enter the online market, the competitive environment within the cultural industry has become very fierce. Many traditional offline enterprises couldn't withstand the impact of the pandemic and were eliminated by society, but within these short two years, many successfully transformed cultural industries emerged. These enterprises mostly relied on diversified strategy models to accelerate transformation and upgrading, gaining significant profits and diversified development models and revenue channels during the significant increase in resident consumption levels during the pandemic control period. For instance, the transformation made by Sanqi Mutual Entertainment during the pandemic is worth emulating by most gaming companies [3].

2. Brief Analysis and Classification of Diversified Strategy

(1) Brief Analysis of Diversified Strategy

Diversified strategy was proposed by the father of strategic management Igor Ansoff, who mentioned the classification of diversified strategies in his book "Corporate Strategy". This globally influential strategic model is involved in the management guidelines and policies of multiple countries, so much so that today, all enterprises, big and small, strive to have a place according to the development model of diversified strategy [4].

(2) Classification and Meaning of Diversified Strategy

There are four types of diversified strategies: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The meanings of the four different models derived from the diversified strategy also vary. Horizontal diversification refers to enterprises using the original market conditions to produce new products that meet new user needs, thereby driving market consumption. Vertical integration refers to enterprises deriving vertically based on their development situation, using the product industry chain to penetrate other market fields to seek new consumers. Concentric diversification places more emphasis on the innovation of existing technology, requiring the production of new products within the existing production scope, realizing the whole process through the transformation of existing technology. Conglomerate diversification emphasizes expanding the operational scope, requiring enterprises to connect related raw materials, technology, market, and other factors with their products to expand the operational scope [5].

3. Impact of Diversified Strategy on Gaming Company Performance

It can be said that in the operation process of all gaming companies, the impact of diversified strategies on gaming company performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. The influence brought about by these two changes gradually brings about effects that boost company performance. The diversified strategy has multiple impacts. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversified strategies on gaming company performance [6].

(1) Change of Operation Mode

At present, the main operation scope of Sanqi Mutual Entertainment Game Company is very extensive, which is also the advantage brought by diversified strategy. The company's business involves not only interactive entertainment operations, but also it has fully taken over the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, it has constantly innovated by keeping pace with technology to broaden the market to include film and television and secondary anime layout. It is also shaping its entertainment industry chain in music, VR technology, and various live broadcasts and other pan-entertainment businesses.

In 1995, Sanqi Mutual Entertainment Game Company was established, but the initial development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise and initially, Sanqi Mutual Entertainment's industry chain did not involve game and entertainment industry operations, always facing the risk of being swallowed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company got listed in 2011. But with poor operations in later stages and market contraction, Sanqi Mutual Entertainment ultimately 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 nominally it was an acquisition, for Sanqi Mutual Entertainment, it was an opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party cooperation. It is worth mentioning that the exhibition strategy that Sanqi Mutual Entertainment has always operated was already beginning to show its prowess at this time. Sanqi Mutual Entertainment Company transitioned from a single modern cultural and creative company before the acquisition to today's dual-main business listed company integrating advanced manufacturing and modern cultural creativity. Correspondingly, changes also took place in the company's operational strategy, the business scope covered by the original cultural creativity industry.