This Lord is Very Scientific-Chapter 666 - 598

(Anti-theft, will send when the time comes.) 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 dissemination method of games is no longer confined to rigid promotional models, and the influence of games has progressively expanded into various aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, and improve performance to keep up with the rapid development of the times. Diversification strategy perfectly aligns with the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of development for enterprises, also applies to game companies. This article uses Sanqi Mutual Entertainment Company as an example to elucidate the impact of diversification strategy on the performance of gaming companies.

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

Diversification strategy is a market strategy means adopted by enterprises during the operation process to occupy new markets and expand into new markets. It is also the strategic planning adopted by enterprises to avoid risks encountered in the operation of a single business by entering new business fields with focus and preparation. Implementing diversification strategy in game companies can effectively improve company performance and bring about a transformation from quantitative to qualitative change in the development of game companies.

1. Macroscopic background of diversification strategy

Entering 2021, with the country's effective control of the pandemic, people's lives have returned to normal, and the economic and cultural landscape presents a great revival situation. 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-pandemic level [1]. This is extremely favorable news for the gaming industry, which occupies a significant proportion of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted the performance of game companies. The warming of the cultural industry means, for most game companies, the large-scale development and prosperity of the cultural industry can promote more game companies to step onto the path of sustainable development [2].

From last year's outbreak to the current stabilization of the pandemic, the country has issued policies supporting the development of the cultural industry from multiple aspects such as finance, system, and finance. Although the pandemic has stalled people's travel, it cannot control the speed of online network dissemination. More and more new media are emerging, driving the development of the cultural industry during pandemic prevention. However, because every company wants to squeeze into the online market, the competitive environment within the cultural industry is extremely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. Yet, in this short two-year period, many successful transformation cultural industries have emerged, and these enterprises mostly relied on diversification strategy mode to accelerate transformation and upgrade. During the pandemic prevention period, when residential consumption levels significantly increased, they also gained a lucrative harvest, acquiring more diverse development modes and channels for fund income. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning from for most gaming companies [3].

2. Analysis and classification of diversification strategy

(A) Simplified analysis of diversification strategy

Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic management. In his book "What is Business Strategy," he mentioned the classification of diversification strategy. This world-influencing strategic mode is involved in the management policies of multiple countries, so much so that today every large and small enterprise is seeking a place by following the development mode of diversification strategy [4].

(B) Classification of diversification strategy and its meaning

There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and holistic diversification. The four different modes derived from diversification strategy also have different meanings. Horizontal diversification refers to the production of new products that can meet new user needs by utilizing the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation according to the company's own development situation, penetrating into other market fields within the product industry chain to seek new consumer targets; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, realizing the process through the transformation of existing technology; holistic diversification focuses more on expanding the scope of business change. Enterprises need to connect factors such as raw materials and technology related to their products and the market to expand the scope of business [5].

3. Impact of diversification strategy on the performance of game companies

It can be said that in the operation process of all game companies, the impact of diversification strategy on the performance of game companies is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. The transformation from these two parts gradually produces effects that drive the enhancement of company performance. The influence brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on the performance of game companies [6].

(1) Change in operation mode

As of now, the main operating scope of Sanqi Mutual Entertainment Game Company is quite extensive, which is also due to the advantages brought by diversification strategy. The company not only involves the operation of interactive entertainment, but also handles the research and development and distribution of mobile games and web games under the Sanqi Mutual Entertainment Game Company banner. Furthermore, in recent development, it has continuously innovated by keeping pace with contemporary technology, expanding the market to include film and animation ACG (Anime, Comics, and Games) layout. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live streaming and other pan-entertainment businesses.

The Sanqi Mutual Entertainment Game Company was founded in 1995, but the initial 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 the operation of game and other entertainment industries, and there was always the risk of being swallowed up by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. Yet, with subsequent poor operation and market contraction, Sanqi Mutual Entertainment eventually did not escape the fate of acquisition.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with sixty percent equity. Although nominally acquired, for Sanqi Mutual Entertainment, this was an opportunity worth grasping. The two companies completed the asset restructuring of various industries through multi-faceted collaboration. It is worth mentioning that the strategy operated by Sanqi Mutual Entertainment has shown early signs of success; Sanqi Mutual Entertainment Company transformed from a single modern cultural creativity company before the acquisition to a dual main business listed company where advanced production manufacturing and modern cultural creativity run parallel. Correspondingly, the company's operating strategy of Sanqi Mutual Entertainment also underwent changes, and the scope of business activities covered by the original cultural creativity industry.