This Lord is Very Scientific-Chapter 672 - 604

(Anti-theft, will post at that time.) Abstract: With the advancement of technology and the coverage of intelligent networks, the emergence of the gaming industry in recent years has been evident to the public. The dissemination methods of games are no longer restricted to rigid promotional models, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies need to continually integrate resources, innovate and iterate, and improve performance to keep pace with rapid developments. The diversification strategy perfectly aligns with the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy as the primary choice for enterprise development is equally applicable to game companies. This article uses the example of Sanqi Mutual Entertainment Company to illustrate the impact of diversification strategy on game company performance.

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

Diversification strategy is a market strategy tool adopted by enterprises in their operations to occupy new markets and explore new market opportunities. It is also a strategic plan used by enterprises to avoid risks encountered during single business operations by targeted and prepared entry into new business fields. The practical application of diversification strategy in game companies can effectively improve company performance, bringing about a qualitative change in the development of game companies.

1. The macro background of diversification strategy

Entering 2021, under the strong control of the state over the pandemic, people's lives have returned to normal, and the economy and culture have shown a great recovery trend. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a large share in the cultural industry. Although the arrival of the pandemic did not have a significant impact on the gaming industry, the inability to conduct offline activities always affects the performance of game companies. The recovery of the cultural industry means that for most game companies, this symbolizes that the great development and prosperity of the cultural industry can promote and lead more game companies to continuous development [2].

From last year's pandemic outbreak to the current stable situation, the country has issued various policies from fiscal, institutional, financial, and other aspects to support the development of the cultural industry. Although the pandemic has blocked people's travel, it cannot control the speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention period. However, as companies strive to penetrate the online market, the competition environment within the cultural industry has become extremely fierce, and many traditional offline companies could not withstand the impact of the pandemic and were eliminated by society. However, in this brief two-year period, many successfully transformed cultural industries have also emerged, and these companies largely rely on diversification strategy models to accelerate transformation and upgrades, reaping significant benefits during the pandemic prevention period marked by a significant increase in residents' consumption levels, gaining more diversified development models and revenue channels, such as the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning from for most game companies [3].

2. Brief analysis and classification of diversification strategy

(a) Brief analysis of diversification strategy

Diversification strategy was proposed by the founder of strategic management, Igor Ansoff. In his book "Corporate Strategy" he discussed the classification of diversification strategy. This world-influencing strategic model is covered in the management policies of multiple countries, so today every enterprise, big or small, is seeking a place by adopting this diversification strategy development model [4].

(b) Classification and meaning of diversification strategy

There are four types of diversification strategy in total: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The meanings of these four distinct modes derived from diversification strategy vary significantly. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that meet new user needs, thus driving market consumption. Vertical integration involves enterprises deriving vertically based on their own development situation, using product industry chains to penetrate into other market fields and seek new consumption targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production range, with the entire process realized through the transformation of existing technology. Conglomerate diversification emphasizes expanding the range of operations and changes, where enterprises must connect factors related to their products, such as raw materials, technology, and markets, to expand their business scope [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 game company performance is uniformly divided into two parts: change in operational modes and strategic planning transfer. The transformation from these two parts gradually generates effects that enhance company performance. The impact 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 game company performance [6].

(1) Change in operational modes

Currently, Sanqi Mutual Entertainment Game Company's main operational scope is very extensive, which relies on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainment but also independently undertakes the research, development, and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. Moreover, in recent years it has constantly innovated by keeping up with technological advancements, expanding the market to include layouts in film, anime, and second-dimension areas. The company also shapes its cultural industry chain belonging to Sanqi Mutual Entertainment Game Company within music, VR technology, and various live streaming and other pan-entertainment businesses.

Established in 1995, Sanqi Mutual Entertainment Game Company's development road was not smooth initially. The predecessor of Sanqi Mutual Entertainment Game Company was a small-sized enterprise, and its industrial chain originally did not involve the operation of games and other entertainment industries, always facing the risk of market annexation. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company got listed in 2011. Yet, accompanied by poor post-period operation and market contraction, Sanqi Mutual Entertainment did not eventually escape the fate of being acquired. 𝕗𝗿𝕖𝐞𝐰𝗲𝕓𝐧𝕠𝕧𝗲𝐥.𝚌𝐨𝚖

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with sixty percent of the equity. Despite being nominally acquired, for Sanqi Mutual Entertainment this was an opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth mentioning that at this time, the strategic rule consistently operated by Sanqi Mutual Entertainment was already beginning to flourish. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before acquisition to a dual-main business listed company combining advanced production manufacturing and modern cultural creation. Correspondingly, the company's operational strategy also underwent changes, with the business scope covered by the original cultural creative industry...