This Lord is Very Scientific-Chapter 721 - 653
(Anti-theft, will be posted later.) Abstract: With the advancement of technology and the coverage model of smart networks, the rise of the gaming industry in recent years is evident to the public. The dissemination of games is no longer constrained by rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, and enhance performance in the rapid development of the times. Diversified strategies perfectly cater to the planning needs and development goals within the gaming industry. In the context of economic globalization, diversified strategies, as the preferred model for enterprise development, are equally applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explicate the impact of diversified strategies on gaming company performance.
Keywords: Diversified strategy; gaming company; performance; impact; Sanqi Mutual Entertainment
Diversified strategy is a market strategy means adopted by enterprises in the operational process to capture and develop new markets, as well as to avoid risks encountered in the operation of a single business by strategically entering new business fields. Applying diversified strategy to gaming companies can effectively improve company performance, bringing about a transformation from quantitative changes to qualitative changes in the development of gaming companies.
1. The Macroeconomic Background of Diversified Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal and the economic culture presents an excellent recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the nationwide cultural industry development has basically returned to pre-pandemic levels [1]. This is extremely favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities always affected the performance of gaming companies. The recovery of the cultural industry suggests that the great development and prosperity of the cultural industry can promote more gaming companies toward continuous development [2].
From last year's outbreak to the current pandemic stabilization, the state has introduced supportive policies for the cultural industry from several aspects such as finance, systems, and finance. Although the pandemic hindered people's travel, it couldn't control the spread speed of online networks. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention and control period. However, since each enterprise wishes to enter the online market, the competitive environment among cultural industries is extremely fierce. Many traditional offline enterprises couldn't withstand the pandemic impact and were eliminated by society. Yet, within these short two years, many successfully transformed cultural industries have emerged, mostly relying on diversified strategy models to accelerate transformation and upgrade. They have also yielded abundant returns and acquired diversified development modes and funding channels during the pandemic prevention and control period when consumer spending significantly increased, such as the transformation of Sanqi Mutual Entertainment during the pandemic prevention period, which is worth emulating by most gaming companies [3].
2. Brief Analysis and Classification of Diversified Strategy
(1) Brief Analysis of Diversified Strategy
Diversified strategy was proposed by the pioneer of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversified strategy. This influential strategic model has been touched upon in management policies in several countries, resulting in today where every enterprise, big or small, seeks a place by following the development model of diversified strategy [4].
(2) Classification and Meaning of Diversified Strategy
Diversified strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. These four modes derived from diversified strategy have distinct meanings. Horizontal diversification refers to producing new products that meet new user demands using the original market conditions, thereby driving market consumption. Vertical integration refers to enterprises deriving vertically based on their developmental situation, using product industrial chains to penetrate other market fields to seek new consumer targets. Concentric diversification focuses more on innovation of existing technologies, requiring new product production within the original production scope, achieving transformation through original technology. Conglomerate diversification focuses more on expanding operational scope, requiring companies to consider factors such as related raw materials, technology, and market related to their products to expand operational scope [5].
3. The Impact of Diversified Strategy on Gaming Company Performance
In the operation process of all gaming companies, the impact of diversified strategy on gaming company performance can be universally divided into two parts: changes in operational models and shifts in strategic planning. The effect produced from these two changes gradually drives the improvement of company performance. The influence brought by diversified strategy is multifaceted. This paper will analyze and study the impact of diversified strategy on gaming company performance, using Sanqi Mutual Entertainment Game Company as an example [6].
(1) Changes in Operational Models
Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is quite broad, which is an advantage brought by diversified strategy. The company's business is not only involved in the operation of interactive entertainment, but also encompasses the research and release of mobile and web games under the banner of Sanqi Mutual Entertainment Game Company. Furthermore, in recent years, it continuously innovates along with the advancement of technology, expanding the market to layout in film and anime domains, and also shaping its own cultural industry chain in the market in music, VR technology, and various streaming and other pan-entertainment businesses.
Sanqi Mutual Entertainment Game Company, established in 1995, did not have a smooth path in its early developmental phase. Its predecessor was a small enterprise, initially without any involvement in the operation of game or entertainment industries, always at risk of being swallowed by the market. However, by relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. Yet, accompanying subsequent operational inefficiencies and market contractions, Sanqi Mutual Entertainment could not escape the fate of acquisition ultimately. 𝐟𝐫𝕖𝗲𝘄𝚎𝗯𝕟𝐨𝕧𝐞𝚕.𝕔𝕠𝐦
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with a 60% equity. Though being acquired nominally, it represented a developmental opportunity worth seizing for Sanqi Mutual Entertainment. Under the multi-party collaboration, the two companies completed the asset restructuring of various industries. It's worth noting that the strategy that Sanqi Mutual Entertainment had always operated began to show its edge at this time. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creative company before the acquisition to a dual main business listed company of advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment also experienced changes, expanding the previously covered business scope of the cultural creative industry.
