This Lord is Very Scientific-Chapter 671 - 603: Alas, my insomnia has caused recent discomfort in my body!

(Anti-theft, to 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 has been witnessed by the nation. The methods of game dissemination are 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, and upgrade their performance with the rapid development of the times. The diversification strategy aptly meets the planning needs and developmental goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of corporate development, equally applies to game companies. This paper exemplifies the impact of diversification strategy on the performance of game companies using Sanqi Mutual Entertainment Company as a case study.

Keywords: Diversification Strategy; Game Company; Performance; Impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategic approach taken by enterprises during operation to occupy new markets and explore new markets. It is also a strategic plan for companies to avoid risks encountered in operating a single business and to enter new business fields with targeted and prepared measures. Applying the diversification strategy practically in game companies can effectively improve company performance, bringing about a process of transformation from quantitative to qualitative changes in the development of game companies.

1. Macro Background of Diversification Strategy

Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture are showing a promising recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry has basically recovered to the level before the pandemic [1]. This is very favorable news for the gaming industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic has not severely impacted the gaming industry, the inability to conduct offline activities has always affected game companies' performance. The warming of the cultural industry means that for most game companies, the grand development and prosperity of the cultural industry can promote and spur more game companies onto the path of sustainable development [2]. 𝚏𝕣𝕖𝚎𝚠𝚎𝚋𝚗𝐨𝐯𝕖𝕝.𝕔𝐨𝕞

From the outbreak of the pandemic last year to the current stabilization of the pandemic, the state has issued relevant policies from multiple aspects such as finance, institutions, and finance to support the development of the cultural industry. Although the pandemic has hindered people's travels, it cannot control the speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during pandemic prevention. However, since every enterprise wants to squeeze into the online market, the competitive environment within the cultural industry is very intense. Many traditional offline enterprises have been eliminated by society due to the pandemic impact at this time. However, in these short two years, many cultural industries have successfully transformed. These enterprises have mostly relied on a diversification strategy model to accelerate transformation and upgrading, gaining very successful results during the pandemic prevention period when residents' consumption levels significantly increased, and they have obtained more diversified development modes and income channels. For example, the transformation made by Sanqi Mutual Entertainment during the pandemic prevention period is worth emulating by most game companies [3].

2. Brief Analysis and Categorization of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic management. In his book "Corporate Strategy," he mentioned the categorization of diversification strategy. This globally influential strategic model has been involved in the management guidelines and policies of several countries, to the extent that today every enterprise, large or small, seeks a place according to the development model of a diversification strategy [4].

(2) Categorization and Meaning of Diversification Strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different modes derived from diversification strategy each have distinct meanings. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that meet users' new demands, thereby driving market consumption; vertical integration involves companies deriving vertically according to their development circumstances, utilizing the product industry chain to penetrate other market fields to seek new consumers; concentric diversification focuses more on innovation of existing technologies, requiring the production of new products within the original production scope, achieving the process through the transformation of original technologies; conglomerate diversification places greater emphasis on expanding the scope of operations, requiring enterprises to connect with materials and technologies related to their products as well as market factors to expand the operational range [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 consistently divided into two parts: the change in the operational model and the shift in strategic planning. The effects gradually emerge from these two parts of change, driving the performance improvement of companies. The impact brought by the diversification strategy is multi-faceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and research the impact of diversification strategy on game company performance [6].

(1) Change in Operational Model

Presently, the primary operational scope of Sanqi Mutual Entertainment Game Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment but also comprehensively covers the research and publication of mobile and web games under Sanqi Mutual Entertainment Game Company. Additionally, in recent years, it has continuously innovated by keeping pace with modern technology, expanding the market to set up film and anime ACG. It also shapes the market's cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music and VR technology, as well as various live broadcast and pan-entertainment businesses.

1995 marked the establishment of Sanqi Mutual Entertainment Game Company, but the initial development path was not entirely smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries. There was always a risk of being swallowed by the market, but through steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011, but with subsequent poor operations and market contraction, Sanqi Mutual Entertainment eventually did not escape the fate of acquisition.

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 an opportunity worth seizing. The two companies completed various industrial asset restructurings through multi-sided cooperation. Notably, the operational strategy that Sanqi Mutual Entertainment had always operated is beginning to show prominence; Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition into a dual main business listed company of advanced production manufacturing and modern cultural creative coexistence, corresponding to the company's operational strategy changes, the former business scope of cultural creative industry covered