This Lord is Very Scientific-Chapter 669 - 601: The Birth of the Nuclear Bomb! Alarming All Directions!

(Anti-theft, will be sent later.) Abstract: Along 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 promotion styles, and the influence of games has gradually extended to various aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate, update, and improve performance with the rapid development of the times. Diversified strategy fits well with the planning needs and development goals within the gaming industry. In the context of economic globalization, diversified strategy as the preferred mode of enterprise development is equally applicable to game companies. This article exemplifies Sanqi Mutual Entertainment Company to illustrate the impact of diversified strategy on game company performance.

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

Diversified strategy is a market strategy approach adopted by enterprises during operations to occupy new markets and explore new market opportunities. It is also a strategic planning method for enterprises to enter new business fields with targeted preparation to avoid risks encountered in operating a single business. Applying diversified strategy to game companies can effectively enhance company performance, bringing about a process of transformation from quantitative to qualitative changes in the development of game companies.

1. Macro background of diversified strategy

Entering 2021, with the effective control of the pandemic by the government, people's lives have returned to normal, and both economy and culture show promising signs of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to pre-pandemic levels[1]. This is very favorable news for the gaming industry which occupies a significant portion of the cultural industry. Although the arrival of the pandemic did not greatly impact the gaming industry, the inability to hold offline events always affects the performance of game companies. The recovery of the cultural industry implies that the significant development and prosperity of the cultural industry can drive more game companies to continue their development path[2].

From the outbreak of last year's pandemic to the current stabilization, the government has issued policies from multiple aspects such as fiscal, institutional, and financial support for the development of the cultural industry. Although the pandemic has obstructed people's travel, it cannot control the spread of the online network. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention period. However, the fierce competition environment within the cultural industry is due to the eagerness of enterprises to squeeze into the online market. Many traditional offline enterprises have been eliminated by society due to the pandemic, but numerous successfully transformed cultural industries have emerged within this short two-year period. These enterprises largely rely on diversified strategy models to accelerate transformation and upgrading, and they have achieved significant growth during the pandemic prevention period when consumer levels have significantly improved, gaining diversified development models and revenue channels. For example, the transformation undertaken by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth emulating by most game companies[3].

2. Overview and classification of diversified strategy

(I) Overview of diversified strategy

Diversified strategy was proposed by the founding father of strategic management, Igor Ansoff. In his book "What is Corporate Strategy", he mentioned the classification of diversified strategy. This world-influencing strategy model has been involved in the management guidelines and policies of multiple countries, leading to every enterprise seeking a place following the development model of diversified strategy today[4].

(II) Classification of diversified strategy and its meaning

Diversified strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different modes derived from diversified strategy have different meanings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that meet users' new demands, thereby driving market consumption; vertical integration refers to enterprises deriving vertically based on their development situation, seeking new consumption targets by infiltrating other market fields through the product industry chain; concentric diversification emphasizes innovation of existing technology, needing to produce new products within the existing production range, achieving this through the transformation of existing technology; conglomerate diversification emphasizes expanding the range of operations, enterprises need to consider factors related to raw materials and technology as well as markets correlated with their products to expand the business scope[5].

3. The impact of diversified strategy on game company performance

In the operation process of all game companies, the impact of diversified strategy on game company performance is uniformly divided into two parts: the change of operational mode and the shift of strategic planning. From these two parts of the transformation, effects gradually emerge, driving the improvement of company performance. The impact brought by diversified strategy is multi-faceted. This paper will analyze and study the impact of diversified strategy on game company performance, taking Sanqi Mutual Entertainment Game Company as an example[6].

(1) Change of operational mode

Currently, Sanqi Mutual Entertainment Game Company's main operation scope is quite extensive, which is an advantage brought by diversified strategy. The company's business involves not only interactive entertainment operations but also undertakes the development and distribution of mobile games and web games. Moreover, in recent years, it has continuously innovated with advancing technology, extending the market to layout in the film and animation subculture realm, and shaping Sanqi Mutual Entertainment Game Company's market cultural industry chain in areas such as music, VR technology, and various live-streaming entertainment businesses.

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, its industry chain did not involve the operation of gaming and other entertainment industries, always facing the risk of being swallowed by the market. However, thanks to the stable development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. But along with poor later-stage operations and market contraction, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired sixty percent equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Despite the acquisition in name, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. Through multi-party collaboration, the two companies completed asset restructuring of various industries. It is worth mentioning that the strategy that Sanqi Mutual Entertainment had been operating began to show prominence at this time. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creative company before the acquisition to a dual-main business listed company now, featuring advanced production manufacturing and modern cultural creativity, corresponding with changes in the operational strategy of Sanqi Mutual Entertainment Company. The original cultural creative industry covered business scope