This Lord is Very Scientific-Chapter 664 - 596

(Anti-theft, will be released at the time.) Abstract: Accompanied by the advancement of technology and smart network coverage, the rise of the game industry in recent years has been apparent to the public. The dissemination method of games is no longer confined to rigid promotional models, and the influence of games has gradually expanded to various aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, iterate, and improve performance along with the rapid development of the times. A diversification strategy fits well with the planning needs and development goals within the game industry. Against the backdrop of economic globalization, the diversification strategy as the preferred development model for enterprises is equally applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategies on the performance of game companies.

Keywords: Diversification strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment

Diversification strategy is a market strategy means employed by enterprises in the operating process to claim and expand new markets. It also helps enterprises to avoid risks encountered during the operation of a single business by strategically and preparedly entering new business domains. Applying a diversification strategy effectively to game companies can significantly enhance company performance and bring about a qualitative change from a quantitative one in the development of game companies.

1. Macroscopic Background of Diversification Strategy

Entering 2021, with the effective control of the epidemic, people's lives have returned to normal, and economy and culture have shown a thriving recovery situation. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry has basically returned to pre-epidemic levels [1]. This is very favorable news for the game industry, which holds a large proportion in the cultural industry. Although the epidemic did not cause significant impact to the game industry, the inability to carry out offline activities has always affected the performance of game companies. Through the warming of the cultural industry, for most game companies, this means the great development and prosperity of the cultural industry can promote more game companies to embark on the path of continuous development [2].

From last year's outbreak to the present stability of the epidemic, the country has issued relevant policies from fiscal, institutional, financial and other aspects to support the development of the cultural industry. Although the epidemic has blocked people's steps of going out, it cannot control the speed of online network propagation. More and more new media have emerged, promoting the development of the cultural industry during epidemic prevention, but due to various enterprises wanting to squeeze into the online market, the competitive environment among cultural industries is very fierce. Many traditional offline enterprises could not withstand the impact of the epidemic and were eliminated by society at this time, but many successfully transformed cultural industries also emerged during this short two-year time. These enterprises mostly accelerated transformation and upgrading relying on the diversification strategy mode, and equally harvested abundant results during the epidemic prevention period when residents' consumption levels significantly improved, obtaining more diverse development modes and funding income channels. For example, the transformation made by Sanqi Mutual Entertainment during the epidemic prevention period is worth learning from for most game companies [3]. 𝐟𝕣𝕖𝐞𝐰𝕖𝚋𝐧𝗼𝚟𝐞𝕝.𝗰𝐨𝐦

2. Brief Analysis and Classification of Diversification Strategy

(a) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the founding father of strategic management, Igor Ansoff. In his work "What is Corporate Strategy," he mentioned the classification of diversification strategies. This world-influencing strategic model is involved in the management policies of multiple countries, resulting in every enterprise, large or small, today seeking a position according to the development model of diversification strategy [4].

(b) Classification and Meaning of Diversification Strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The meanings derived from these four different modes of diversification strategy are also different. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption; vertical integration is the enterprise vertically deriving based on its own development situation, using the product industry chain to penetrate into other market domains to seek new consumers; concentric diversification focuses more on innovation of existing technology, requiring new product production within the existing production scope, achieving through the transformation of existing technology; overall diversification pays more attention to changes in the scope of operation expansion, enterprises need to connect factors such as raw materials and technology related to their own products and the market to expand the scope of operation [5].

3. 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: the change in operating mode and the transfer of strategic planning. These changes gradually produce effects that drive the improvement of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on game company performance using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Change in Operating Mode

Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is very broad, which is also reliant on the advantages brought by diversification strategy. The company's business covers not only interactive entertainment operations but also independently undertakes the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, following technological advancements to continuously innovate, the market has broadened its horizons to layout film and animation, and also shapes Sanqi Mutual Entertainment Game Company's market cultural industry chain in various area-based entertainment businesses such as music, VR technology, and various live broadcasts.

Sanqi Mutual Entertainment Game Company was established in 1995, but the early development path was not smooth sailing. Sanqi Mutual Entertainment Game Company's predecessor was a small enterprise, and initially, Sanqi Mutual Entertainment's industrial chain did not involve the operation of games and entertainment industries, always faced with the risk of being swallowed by the market. Depending on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011, but with poor post-operation and market contraction, Sanqi Mutual Entertainment eventually could not escape the fate of acquisition.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment this was a favorable development opportunity. Through multi-faceted collaboration between the two companies, they completed asset restructuring of various industries. It is worth mentioning that the exhibition strategy which Sanqi Mutual Entertainment has always operated is already emerging, from a single modern cultural creative company before acquisition, Sanqi Mutual Entertainment Company has transformed into a now double main business listed company advancing production manufacturing and modern cultural creativity side by side. Correspondingly, the company operating strategy of Sanqi Mutual Entertainment is also undergoing changes, the business scope covered by the original cultural creative industry.