This Lord is Very Scientific-Chapter 724 - 656
(Anti-theft, 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 dissemination of games is no longer confined to rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously merge resources and innovate with the rapid development of the times to improve performance. A diversified strategy precisely meets the planning needs and development goals within the gaming industry. In the context of economic globalization, a diversified strategy, as the preferred model for enterprise development, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of a diversified strategy on the performance of gaming companies.
Keywords: Diversified strategy; gaming company; performance; impact; Sanqi Mutual Entertainment Company
Diversified strategy is a market strategic approach that enterprises adopt during their operations to capture new markets and develop new markets. It is also a strategic plan used by enterprises to avoid risks encountered during the operation of a single business and to enter new business fields with targeted preparation. Applying a diversified strategy practically to gaming companies can effectively improve company performance and bring about a process of qualitative change from quantitative change in the development of gaming companies.
1. Macroeconomic background of diversified strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and there is a great trend of recovery in the economy and culture. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which accounts for a significant proportion of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities always impacts 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 sustainable development [2].
From the outbreak of the pandemic last year to its current stabilization, the state has issued relevant policies to support the development of the cultural industry in various aspects such as finance, systems, and finance. Although the pandemic hindered people's travel, it could not control the speed of online network dissemination. More and more new media appeared, driving the development of the cultural industry during the pandemic prevention period. However, as each company wants to squeeze into the online market, the competitive environment within the cultural industry has become very fierce. Many traditional offline enterprises have been eliminated by society due to their inability to withstand the impact of the pandemic at this time. However, in these short two years, many cultural industries successfully transformed, relying mostly on a diversified strategic model to accelerate transformation and upgrading. During the pandemic prevention period, when the level of residents' consumption significantly increased, they also gained a lot, obtaining more diversified development models and income channels. For example, Sanqi Mutual Entertainment's transformation during the pandemic prevention period is worth emulating for most gaming companies [3].
2. Brief analysis and classification of diversified strategy
(A) Brief analysis of diversified strategy 𝓯𝙧𝙚𝒆𝙬𝙚𝒃𝙣𝙤𝒗𝓮𝓵.𝙘𝙤𝙢
Diversified strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversified strategy. This world-impacting strategic model is involved in the management policies of multiple countries, leading every large and small enterprise today to seek a place according to the development model of a diversified strategy [4].
(B) Classification and meaning of diversified strategy
Diversified strategy is divided into four types in total: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The derived four different model meanings of diversified strategy are also different. 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 involves enterprises, based on their development status, deriving vertically and using product industry chains to penetrate other market fields to seek new consumers. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production scope and achieving the whole process through the transformation of existing technology. Conglomerate diversification focuses more on expanding the scope of operations, requiring enterprises to connect with raw materials, technology, and market factors related to their products to expand the scope of operations [5].
3. Impact of diversified strategy on the performance of gaming companies
It can be said that in the operations of all gaming companies, the impact of a diversified strategy on the performance of gaming companies is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. The evolution in these two parts gradually generates effects, driving the improvement of company performance. The impact brought by a diversified strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of a diversified strategy on the performance of gaming companies [6].
(1) Changes in the operational model
Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is very extensive. This is also the advantage brought by the diversified strategy. The company's business not only involves the operation of interactive entertainment but also independently manages the research and publication of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years of development, they have kept pace with technological advancements, constantly innovating, and expanding the market to include layouts in film and animation subcultures. They also shape the market cultural industry chain of Sanqi Mutual Entertainment Game Company in music, VR technology, and various streaming and pan-entertainment businesses.
Founded in 1995, Sanqi Mutual Entertainment Game Company struggled on its initial development path. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and at first, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, always at risk of being annexed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with poor management in the later stage 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, this was a development opportunity worth grasping for Sanqi Mutual Entertainment. Under multi-faceted collaboration, the two companies completed asset restructuring of various industries. It is worth mentioning that the strategy that Sanqi Mutual Entertainment has been operating started to emerge at this time. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creative company before acquisition to the now-listed company with dual main businesses of advanced production manufacturing and modern cultural creativity, corresponding to which Sanqi Mutual Entertainment's company operational strategy is also changing, and the scope of business covered by the original cultural and creative industry.
