This Lord is Very Scientific-Chapter 674 - 606

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(Anti-theft, to be released in time.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the game industry in recent years is evident to the public. The dissemination 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 also need to continuously integrate resources, innovate, and iterate to improve performance in the rapid development of the times. Diversification strategies precisely meet the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred model for enterprise development, is equally applicable to game companies. This article illustrates the impact of diversification strategy on the performance of game companies, using Sanqi Mutual Entertainment Company as an example.

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

Diversification strategy is a market strategy means adopted by enterprises during their operation to capture more and open new markets, and also a strategic plan used by enterprises to avoid risks encountered in operating a single business by targeting and preparing to enter new business fields. The practical application of the diversification strategy in game companies can effectively improve the company's performance, bringing a change from quantitative to qualitative for the development of game companies.

1. The Macro Background of Diversification Strategy 𝐟𝕣𝕖𝐞𝐰𝕖𝚋𝐧𝗼𝚟𝐞𝕝.𝗰𝐨𝐦

As 2021 dawns, under effective control of the epidemic by the state, people's lives are returning to normal, and the economy and culture are also showing great recovery. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the development of the national cultural industry has basically returned to the pre-epidemic level[1]. This is very beneficial news for the game industry, which occupies a large proportion of the cultural industry, although the arrival of the epidemic did not cause too much impact on the game industry, the inability to conduct offline activities always affects the performance of game companies. The warming of the cultural industry implies a great development and prosperity for most game companies, which can promote more game companies to embark on sustainable development paths[2].

From the outbreak of the epidemic last year to the current stabilization, the state has introduced relevant policies from finance, system, finance, and other aspects to support the development of the cultural industry. The epidemic may block people's steps to go out, but 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 epidemic prevention and control period, but since all enterprises want to squeeze into the online market, the competitive environment within the cultural industry becomes very fierce. Many traditional offline enterprises couldn't withstand the impact of the epidemic and were eliminated by society. However, in these short two years, many successfully transformed cultural industries have emerged, most of which rely on diversification strategy models to accelerate transformation and upgrading. These companies have also gained substantially during the epidemic prevention and control period with significantly improved resident consumption levels, obtaining more diversified development models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainment during the pandemic is worth learning for most game companies[3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the ancestor of strategic management, Igor Ansoff. In his work "Corporate Strategy", he mentioned the classification of diversification strategies. This world-influencing strategic model is involved in the management policies of many countries, so today every large and small enterprise is seeking a place following the development model of diversification strategy[4].

(2) Classification 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 the diversification strategy also have different meanings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption. Vertical integration is when enterprises vertically derive according to their development situation, infiltrating other market fields using the product industry chain to seek new consumer objects. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, achieving transformation through the metamorphosis of existing technology. Conglomerate diversification places more emphasis on expanding the range of operations, requiring enterprises to expand their operational scope by linking factors related to their products, such as raw materials, technologies, and markets[5].

3. Impact of Diversification Strategy on the Performance of Game Companies

It can be said that during the operation of all game companies, the impact of diversification strategy on performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. From these two parts, the change gradually produces effects, driving the improvement of the company's performance. The impact brought by the diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on the performance of game companies, taking Sanqi Mutual Entertainment Game Company as an example[6].

(1) Change in Operation Mode

At present, the main operating range of Sanqi Mutual Entertainment Game Company is very broad, and this is also relying on the advantages brought by the diversification strategy. The company not only involves the operation of interactive entertainment but also undertakes the R&D and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, keeping pace with the technology of the times and continuously innovating, the market has expanded to include film and television, and anime ACGN layout, while shaping its own cultural industry chain in music, VR technology, and various live broadcast and other pan-entertainment businesses.

Founded in 1995, Sanqi Mutual Entertainment Game Company did not have a smooth path in its early development. Its predecessor was a small enterprise, and at the beginning, the industry's chain under Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, always facing the risk of being swallowed by the market. However, by relying on the steady development of a single industry, Sanqi Mutual Entertainment Company got listed in 2011. However, due to the poor operations in the later period and the market contractions, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with a 60% shareholding. Although acquired in name, for Sanqi Mutual Entertainment, this was an opportunity worth grasping. Under multi-faceted collaboration, the two companies completed the asset reorganization of various industries. Worth mentioning, the exhibition strategy that Sanqi Mutual Entertainment had been operating began to show its edge. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to today's dual-core listed company with advanced manufacturing and modern cultural creativity in tandem. Correspondingly, the company operations strategy of Sanqi Mutual Entertainment has also been changing, and the business scope covered by the original cultural creativity industry has been undergoing changes.