This Lord is Very Scientific-Chapter 692 - 624
(Anti-theft, to be released when it is time.) Abstract: With the progress of technology and the coverage of smart networks, the rise of the gaming industry in recent years is evident to all, and the methods of spreading games no longer stick to rigid promotional modes. The influence of games has gradually expanded to all aspects of life, and corresponding game companies need to continuously integrate resources, innovate, update, and improve performance in line with the rapid development of the times. Diversification strategy just meets the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategy as the preferred mode of enterprise development also applies to gaming companies. This article uses 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 adopted by enterprises during their operations to occupy more new markets and develop new markets, as well as to avoid risks encountered in the operations of a single business. It involves entering into new business fields with targets and preparation. Applying diversification strategy practically to gaming companies can effectively improve company performance and bring a process of qualitative change through quantitative change for the development of gaming companies.
1. The macro background of diversification strategy
Entering into 2021, under the effective control of the epidemic by the state, people's lives have returned to normal, and the economy and culture are showing a promising trend of revival. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to pre-epidemic levels [1]. This is very favorable news for the gaming industry, which accounts for a significant portion of the cultural industry. Despite the epidemic not having a great impact on the gaming industry, the inability to carry out offline activities always affected the performance of gaming companies. The warming of the cultural industry means, for most gaming companies, that the great development and prosperity of the cultural industry can promote and drive more gaming companies to embark on a path of continuous development [2].
From the outbreak of the epidemic last year to the current stability of the epidemic, the state has promulgated relevant policies from various aspects such as finance, institutions, and finance to support the development of the cultural industry. Although the epidemic has blocked people's travel, it cannot control the speed of online network dissemination. The emergence of more and more new media has driven the development of the cultural industry during the epidemic prevention and control period. However, since every company wants to squeeze into the online market, the competitive environment within the cultural industry is very fierce. Many traditional offline companies could not withstand the impact of the epidemic and were eliminated by society, but during these short two years, many successfully transformed cultural industries emerged. These companies mostly relied on the diversification strategy model to accelerate transformation and upgrade, and during the epidemic control period, when residents' consumption levels significantly increased, they also gained considerable harvests and obtained more diverse development models and channels of revenue. For example, the transformation made by Sanqi Mutual Entertainment Company during the epidemic control period is worth learning from most gaming companies [3].
2. A brief analysis and classification of diversification strategy
(a) A brief analysis of diversification strategy
Diversification strategy was proposed by the founder of strategic management, Igor Ansoff. In his book "Corporate Strategy", he mentioned the classification of diversification strategy. This strategic model, which has influenced the world, is referenced in the management guidelines and policies of multiple countries, so much so that today, every large and small company is seeking a place according to the development model of diversification strategy [4].
(b) The 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 diversification strategy also have different meanings. Horizontal diversification refers to companies utilizing original conditions provided by the market to produce new products that meet new demands of users, thereby driving market consumption. Vertical integration involves enterprises extending vertically according to their own development situations, utilizing product industry chains to penetrate other market fields to seek new consumer targets. Concentric diversification focuses more on the innovation of existing technologies and requires the production of new products within the original production scope. The entire process is realized through the transformation of existing technologies. Conglomerate diversification emphasizes changes in expanding the range of operations, where enterprises need to connect raw materials and technologies related to their products, as well as market and other factors, to expand the range of operations [5].
3. The impact of diversification strategy on the performance of gaming companies
It can be said that throughout the operation process of all gaming companies, the impact of diversification strategy on their performance is uniformly divided into two parts: the change of the operating model and the shift of strategic planning. The effects gradually generated from these two parts lead to an improvement in company performance. The impact of diversification strategy is multi-faceted. This paper will analyze and research the impact of diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainment Game Company as an example [6].
(1) Changes in the operation model
Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is very broad, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but it also oversees the research and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, it has continuously innovated in line with the times and technology, broadening the market by laying out in film and television as well as anime's second dimension. It has also been shaping the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in areas such as music, VR technology, and various live broadcasts and other pan-entertainment businesses.
Sanqi Mutual Entertainment Game Company was founded in 1995, but the early development road was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise. Initially, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of the gaming and other entertainment industries. It was 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 with poor subsequent operations and market contraction, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, it was a development opportunity worth grasping. The two companies completed various industrial asset restructurings through multi-party collaboration. It is worth mentioning that Sanqi Mutual Entertainment had already shown promising prospects for the operational strategy it had always run. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before being acquired into a dual-core listed company of advanced production manufacturing and modern cultural creativity running parallel today. Correspondingly, the operational strategy of Sanqi Mutual Entertainment also experienced changes, the business scope covered by the original cultural creative industry...
