This Lord is Very Scientific-Chapter 676 - 608

(Anti-theft, to be published in due time.) Abstract: With technology's advancement and the coverage model of smart networks, the rise of the gaming industry has been evident to the public in recent years. The dissemination of games is no longer limited to rigid promotional models, and the influence of games has gradually expanded into various aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, and update to enhance performance with the rapid development of the era. The diversification strategy perfectly meets the planning needs and development goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred mode of enterprise development, is also applicable to gaming companies. This article uses the Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategy on the performance of gaming companies.

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

Diversification strategy is a market strategy approach utilized by enterprises in the operational process to capture new markets and explore new market territories. It is also a strategic plan used by enterprises to avoid risks encountered during the operation of a single business, proactively and preparedly entering new business fields. Applying diversification strategy to gaming companies can effectively enhance company performance, bringing about a process of quantitative to qualitative change in the development of gaming companies.

1, The Macro Background of Diversification Strategy

Entering 2021, under the effective control of the nation's epidemic, people's lives returned to normal, and the economy and culture showed a great recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry had basically returned to pre-epidemic levels[1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the outbreak of the epidemic did not significantly impact the gaming industry, the inability to conduct offline activities always affected gaming companies' performance. Through the warming of the cultural industry, for most gaming companies, this implies that the large development and prosperity of the cultural industry can promote more gaming companies to embark on sustainable development paths[2].

From the outbreak of last year's epidemic to the current stability, the country has promulgated relevant policies to support the development of the cultural industry in terms of finance, institutions, and finance, among others. Although the epidemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new media emerge, leading the development of the cultural industry during the epidemic prevention period. However, as various enterprises vie to enter the online market, the competitive environment within the cultural industry is extremely fierce. Many traditional offline enterprises have been eliminated by society during this time due to the epidemic's impact, but in these short two years, many successfully transformed cultural industries have emerged, and most of these enterprises have accelerated transformation and upgrading relying on the diversification strategy model. During the epidemic prevention period, when residents' consumption levels significantly improved, they also gained substantial returns, obtaining more diverse development modes and funding income channels. For instance, the transformation made by Sanqi Mutual Entertainment during the epidemic prevention period is worthy of reference by most gaming companies[3].

2, Brief Analysis and Classification of Diversification Strategy

(a) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the father of strategic management, Igor Ansoff, in his book "Corporate Strategy", which mentioned the classification of diversification strategies. This globally influential strategic mode is involved in management guidelines and policies of multiple countries, resulting in every enterprise, big or small, seeking a place by developing according to the diversification strategy model today[4].

(b) Classification and Implications 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 also differ in meaning. Horizontal diversification refers to the enterprise utilizing the original market conditions to produce new products that can meet new user demands, thereby driving market consumption. Vertical integration refers to the enterprise deriving vertically based on its development situation, utilizing the product industry chain to penetrate other market fields and seek new consumer objects. Concentric diversification focuses more on the innovation of existing technologies, requiring the production of new products within the original production scope through the evolution of existing technologies. Conglomerate diversification emphasizes the expansion of business scope changes, requiring the enterprise to connect relevant raw materials and technologies related to its products, as well as market factors to expand the business scope[5].

3, The Impact of Diversification Strategy on Gaming Companies' Performance

It can be said that in the operational process of all gaming companies, the impact of diversification strategy on gaming companies' performance is uniformly divided into two parts: changes in operational mode and shifts in strategic planning. From the changes in these two parts, effects gradually arise to boost the company's performance. The influence brought by diversification strategy is multi-faceted. This paper will use Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on gaming companies' performance[6]. 𝒇𝒓𝙚𝒆𝔀𝓮𝓫𝒏𝓸𝙫𝓮𝓵.𝓬𝙤𝙢

(1) Changes in Operational Mode

Currently, the primary operational scope of the Sanqi Mutual Entertainment Game Company is quite extensive, which is also dependent on the advantages brought by diversification strategy. The company's business involves not only the operation of interactive entertainment, but also encompasses the research and issuance of mobile games and web games under the Sanqi Mutual Entertainment Game Company. In recent developments, it has continually innovated in tandem with technological advancements, broadening its market into layouts in film and anime, and also in areas such as music, VR technology, and various live broadcasting and pan-entertainment businesses, shaping the market cultural industry chain belonging to the Sanqi Mutual Entertainment Game Company.

In 1995, the Sanqi Mutual Entertainment Game Company was founded, but its early development was not smooth. The predecessor of the Sanqi Mutual Entertainment Game Company was a small enterprise, initially not involving operations in gaming and other entertainment industries in its industrial chain, always at risk of being swallowed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011, but accompanied by later poor operations and market contraction, Sanqi Mutual Entertainment ultimately did not escape being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity in Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was nominally acquired, it was a developmental opportunity worth seizing for Sanqi Mutual Entertainment. The two companies completed asset restructuring across various industries through multi-faceted collaboration. Notably, the exhibition strategy that Sanqi Mutual Entertainment had been operating began to show promise. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to a dual-primary business listed company that now concurrently engaged in advanced manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainment's company operational strategy was also undergoing changes, with the business scope originally covered by the cultural creative industry.