This Lord is Very Scientific-Chapter 699 - 631
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(Anti-theft, to be released later.) Abstract: With technological progress and the coverage model of intelligent networks, the rise of the game industry in recent years is evident to all. The mode of game dissemination is no longer limited to rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate, and iterate with the rapid development of the times, enhancing performance. Diversified strategies perfectly align with the planning needs and development goals within the game industry. In the context of economic globalization, diversified strategies, as the preferred model for enterprise development, are equally applicable to game companies. This article illustrates the impact of diversified strategies on the performance of game companies, using Sanqi Mutual Entertainment Company as an example.
Keywords: Diversified strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment
Diversified strategies are market strategy means adopted by enterprises during the operational process to dominate new markets and explore new ones. It is also a strategic plan used by enterprises to avoid risks encountered during the operation of a single business, entering new business fields with focus and preparedness. Practical application of diversified strategies in game companies can effectively improve company performance, leading to a process of transformation from quantitative change to qualitative change for the development of game companies.
1. The Macroscopic Background of Diversified Strategies
As we step into 2021, with the state's effective control of the pandemic, people's lives are getting back on track. The economic culture also appears to present a recovering and excellent situation. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically recovered to the pre-pandemic level [1]. This is extremely positive news for the game industry, which occupies a significant portion of the cultural industry. Although the pandemic has not significantly impacted the game industry, the inability to carry out offline activities still affects the performance of game companies. The warming of the cultural industry means major development and prosperity for more game companies, which can promote and drive many game companies towards sustainable development [2].
From the outbreak of the pandemic last year to the current pandemic stability, the state has promulgated relevant policies from various aspects such as finance, systems, and finance to support the development of the cultural industry. Although the pandemic hindered people's travel, it could not control the spread speed of the online network. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention and control period. However, as each company strives to squeeze into the online market, the competitive environment in the cultural industry is extremely fierce. Many traditional offline companies could not withstand the pandemic impact and were eliminated by society, but in these past two short years, a number of successfully transformed cultural industries have emerged. These companies mostly rely on diversified strategy models to accelerate transformation and upgrade, also yielding abundant harvests during the pandemic prevention and control period when residents' consumption levels significantly increased, acquiring more diversified development models and income channels. For example, Sanqi Mutual Entertainment's transformation during the pandemic control period is worth emulating for most game companies [3].
2. A Brief Analysis and Classification of Diversified Strategies
(a) A Brief Analysis of Diversified Strategies
Diversified strategies were proposed by the progenitor of strategic management, Igor Ansoff. In his book "What Is Corporate Strategy," he mentioned the classification of diversified strategies. This world-influencing strategy model has been involved in the management policy directions of multiple countries, leading to all enterprises today, big or small, seeking their place according to the diversified strategy development model [4].
(b) Classification and Meaning of Diversified Strategies
Diversified strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different models derived from the diversified strategy have varying meanings. Horizontal diversification refers to the company using the initial conditions provided by the market to produce new products that meet new user demands, thus driving market consumption; vertical integration is when companies, according to their development situation, derive vertically, use the product industry chain to penetrate other market fields to seek new consumer objects; concentric diversification emphasizes innovation on existing technologies, requiring new products to be produced within the existing production scope, achieving the entire process through the transformation of existing technology; conglomerate diversification focuses more on expanding the business scope, where companies need to connect factors such as related raw materials, technology, and markets related to their own products to expand business scope [5].
3. The Impact of Diversified Strategies on Game Company Performance
In the operational process of all game companies, the impact of diversified strategies on game company performance is divided into two parts: changes in operational modes and shifts in strategic planning. The transformations in these two parts gradually produce effects that drive the improvement of company performance. The impact brought by diversified strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversified strategies on game company performance [6].
(1) Change in Operational Modes
Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is very extensive, which also relies on the advantages brought by diversified strategies. The company's business not only involves the operation of interactive entertainment, but Sanqi Mutual Entertainment Game Company also undertakes the research, development, and release of mobile games and web games. In recent developments, they keep pace with era technology to constantly innovate, expanding the market layout to include film, television, and two-dimensional anime, as well as creating a market cultural industry chain for Sanqi Mutual Entertainment Game Company in music, VR technology, and various live broadcast general entertainment businesses.
Sanqi Mutual Entertainment Game Company was established in 1995, but the early development road was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and the industrial chain initially did not involve the operation of games and other entertainment industries, always risking 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 poor later 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 Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with a 60% equity stake. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset restructurings of various industries through multi-faceted collaboration. It is worth mentioning that the strategy always operated by Sanqi Mutual Entertainment had begun to show results at this time, transforming from a single modern cultural creative company to a dual-main business listed company combining advanced production manufacturing with modern cultural creativity. Correspondingly, the operational strategy of Sanqi Mutual Entertainment Company was also undergoing changes, with the scope of business covered by the former cultural creative industry.
