This Lord is Very Scientific-Chapter 677 - 609

(Anti-theft measure, to be released later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The propagation methods of games are no longer confined to rigid promotional modes, and the influence of games has gradually expanded into all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and update, and improve performance to keep pace with the rapid development of the times. A diversification strategy perfectly aligns with the planning needs and development goals within the gaming industry. Under the backdrop of economic globalization, a diversification strategy, as a preferred model for enterprise development, is equally applicable to gaming companies. This article explains the impact of a diversification strategy on the performance of gaming companies, using Sanqi Mutual Entertainment Company as a case study.

Keywords: Diversification strategy; Gaming companies; Performance; Impact; Sanqi Mutual Entertainment Company

A diversification strategy is a market strategy method adopted by enterprises in the operational process to occupy more new markets and explore new markets. It is also a strategic planning approach utilized by enterprises to avoid the risks encountered in operating a single business, by entering new business fields deliberately and preparedly. Applying a diversification strategy to gaming companies can effectively improve company performance, leading to a transition from quantitative to qualitative development for the gaming companies.

1. Macroeconomic Background of Diversification Strategy

Stepping into 2021, under the effective control of the pandemic by the government, people's lives returned to normal, and the economic and cultural landscapes showed great signs of recovery. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the development of the national cultural industry basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a significant proportion within the cultural industry. Although the pandemic did not cause substantial impact to the gaming industry, the inability to hold offline activities still affected the performance of gaming companies. The warming up of the cultural industry signifies for most gaming companies that the major development and prosperity of the cultural industry can spur more gaming companies to embark on a path of sustainable development [2].

From the outbreak of the pandemic last year to the current state of stabilization, the government has issued relevant policies from various aspects such as finance, institutions, and banking to support the development of the cultural industry. Although the pandemic has hindered people's travel, it could not control the spreading speed of online networks. More and more new media have emerged, promoting the development of the cultural industry during the pandemic prevention period. However, because every enterprise wishes to squeeze into the online market, competition in the cultural industry has become extremely fierce. Many traditional offline enterprises have been eliminated by society under the influence of the pandemic, but in just two short years, many successful cultural industry transformations have also emerged. Most of these enterprises have relied on the diversification strategy model to accelerate their transformation and upgrade, and they have also harvested significant gains during the pandemic prevention period when the residents' consumption levels have increased significantly, gaining more diversified development models and income channels, for example, the transformation made by Sanqi Mutual Entertainment during the pandemic prevention period is worth imitation by most gaming companies [3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," the classification of diversification strategies was mentioned. This globally influential strategic model has been involved in management policies and guidelines in many countries, so much so that today, every enterprise, large or small, is seeking a place based on the diversification strategy development model [4].

(2) Classification and Meaning of Diversification Strategy

The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modal meanings derived from diversification strategy also vary. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can meet new user needs, thereby driving market consumption; vertical integration is where enterprises derive vertically according to their development conditions, infiltrating into other market areas with the product industry chain to seek new consumers; concentric diversification focuses more on innovation of existing technology, needing to produce new products within the original production range, achieving transformation through technical evolution; overall diversification focuses more on expanding the scope of business changes, requiring enterprises to connect with factors such as raw materials, technology related to their products, and the market to expand the business scope [5].

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

In the operational process of all gaming companies, it can be said that the impact of diversification strategy on the performance of gaming companies is uniformly divided into two parts: changes in operating models and shifts in strategic planning. The impact brought by the diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainment Game Company as an example to analyze the impact of diversification strategy on the performance of gaming companies [6].

(1) Changes in Operating Models

At present, the main operational scope of Sanqi Mutual Entertainment Game Company is extremely broad, which is precisely the advantage brought by diversification strategy. The company's business not only involves the operation of interactive entertainment, but Sanqi Mutual Entertainment Game Company also handles the development and distribution of mobile games and web games. In recent developments, it has continuously innovated in line with the technology of the times, expanding the market layout to fields such as film, animation, and the secondary dimension. It is also shaping its market cultural industry chain in music, VR technology, and various live broadcast pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was established in 1995, but the early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, facing the risk of market annexation at any time. However, by relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with poor operation in the later stages and market contraction, Sanqi Mutual Entertainment eventually could not avoid being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Mutual Entertainment Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainment, this was an opportunity worth grasping. The two companies completed the asset restructuring of various industries under multi-faceted cooperation. It is worth noting that the exhibition strategy continuously pursued by Sanqi Mutual Entertainment has begun to show promise at this point. Sanqi Mutual Entertainment Company transformed from a single modern cultural creativity company before the acquisition into a listed company with dual main businesses of advanced manufacturing and contemporary cultural creativity. Correspondingly, the corporate operation strategy of Sanqi Mutual Entertainment also underwent changes, with the original cultural creativity industry encompassing a business scope