This Lord is Very Scientific-Chapter 696 - 628

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(Anti-theft, will be sent later.) Abstract: With the progress of technology and the coverage pattern of intelligent networks, the rise of the game industry in recent years has been evident to the public. The dissemination of games is no longer confined to stereotypical promotional modes, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies must continuously integrate resources, innovate and iterate, and improve performance in line with the rapid development of the times. The diversification strategy perfectly meets the planning needs and development goals within the game industry. Against the backdrop of economic globalization, the diversification strategy, as a preferred model for enterprise development, is also applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of the diversification strategy on the performance of game companies.

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

Diversification strategy is a market strategy adopted by enterprises during operations to occupy new markets and explore new markets more extensively. It is also a strategic planning adopted to avoid the risks encountered during the operation of a single business and to enter new business fields with targeting and preparation. Applying the diversification strategy to game companies can effectively improve company performance and bring about a transformation from quantitative to qualitative development for game companies.

1, Macroeconomic background of diversification strategy

Entering 2021, under the strong control of the pandemic by the country, people's lives have returned to normal, and the economy and culture are showing a promising sign of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry development has basically returned to the pre-pandemic level [1]. This is particularly good news for the game industry, which accounts for a large proportion of the cultural industry. Although the advent of the pandemic did not have a significant impact on the game industry, the inability to conduct offline activities always affects the performance of game companies. With the recovery of the cultural industry, for most game companies, this means that the great development and prosperity of the cultural industry can promote and drive more game companies to embark on a path of sustainable development [2].

From the outbreak of the pandemic last year to the current stability, the country has introduced relevant policies from multiple aspects such as finance, system, and finance to support the development of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of the online network. More and more new media have appeared, driving the development of the cultural industry during the pandemic prevention and control period. However, as each enterprise wants to squeeze into the online market, the competitive environment within the cultural industry is very fierce. Many traditional offline enterprises have been unable to withstand the impact of the pandemic and have been eliminated by society. Yet, in this short period of two years, many successfully transformed cultural industries have emerged, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention and control period, when residents' consumption level increased significantly, they likewise reaped substantial gains and obtained more diverse development models and income channels. For example, the transformation made by Sanqi Mutual Entertainment during the pandemic prevention and control period is worth learning for most game companies [3].

2, Brief analysis and classification of diversification strategy

(1) Brief analysis of diversification strategy

The diversification strategy was proposed by Igor Ansoff, the pioneer of strategic management. In his book "What is Corporate Strategy," he mentioned the classification of diversification strategies. This world-influencing strategic model is involved in the management policies of multiple countries, so much so that today's enterprises, big and small, seek a place according to the development model of the diversification strategy [4].

(2) Classification of diversification strategy and its meanings

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 capable of meeting new user needs, thereby driving market consumption; vertical integration is the vertical derivation of enterprises according to their own development, seeking new consumers by penetrating other market fields with product industry chains; concentric diversification places more emphasis on the innovation of existing technology, requiring the production of new products within the existing production range, achieving through the transformation of existing technology; conglomerate diversification places more emphasis on the range expansion of business operation, wherein enterprises need to connect with raw materials and technologies related to their own products and market factors to expand the operational range [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 the diversification strategy on game company performance is uniformly divided into two parts: the change of operational mode and the shift of strategic planning. From these two parts of reform, effects gradually generate to drive the company's performance improvement. The impact brought by the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of the diversification strategy on the performance of game companies [6].

(1) Change of operational mode

Currently, Sanqi Mutual Entertainment Game Company's main operational scope is quite extensive, which is due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment but also comprehensively encompasses the research, development, and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In its recent development, it keeps up with the times and technology, continuously innovating, expanding the market to include film and animation "second dimension," as well as shaping its market culture industry chain in music, VR technology, and various live broadcast and other pan-entertainment businesses.

Established in 1995, Sanqi Mutual Entertainment Game Company did not have a smooth path in its early development. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, initially without involvement in game and entertainment industry operations in its industrial chain, with the constant risk of being absorbed by the market. However, relying on the steady development of the single industry, Sanqi Mutual Entertainment Company went public in 2011. But with poor later operations and market tightening, Sanqi Mutual Entertainment still did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired sixty percent of the equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was acquired in name, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset restructuring in various industries through multiple collaborations. Notably, the strategic that Sanqi Mutual Entertainment had been operating was beginning to show its strengths. Sanqi Mutual Entertainment Company transformed from a single modern cultural creativity company before being acquired into a dual-main business listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment Company also underwent changes. The business scope encompassed by the original cultural creative industry