This Lord is Very Scientific-Chapter 730 - 662
(Anti-theft, post when ready.) 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 way games are spread is no longer confined to rigid promotional methods; instead, the influence of games is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, and improve performance alongside the rapid development of the times. Diversified strategies perfectly align with the planning needs and development goals within the gaming industry. Under the background of economic globalization, diversified strategies, as the primary mode of enterprise development, are also applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversified strategies on the performance of gaming companies.
Keywords: diversified strategies; gaming companies; performance; impact; Sanqi Mutual Entertainment
Diversified strategies are market strategies adopted by enterprises in their operations to conquer and develop new markets, and also to avoid risks encountered in operating a single business by strategically and proactively entering new business areas. The practical application of diversified strategies in gaming companies can effectively enhance company performance, bringing about a transformation from quantitative to qualitative growth in the development of gaming companies.
1. The Macro Background of Diversified Strategies
Entering 2021, under the country's effective control of the pandemic, people's lives are back on track, and the economic and cultural landscapes show a promising revival. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has largely recovered to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which holds a significant proportion within the cultural industry. Although the arrival of the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities continued to impact the performance of gaming companies. With the warming of the cultural industry, for most gaming companies, this implies that the grand development and prosperity of the cultural industry can promote and lead more gaming companies onto the path of sustainable development[2]. 𝓯𝙧𝙚𝒆𝙬𝙚𝒃𝙣𝙤𝒗𝓮𝓵.𝙘𝙤𝙢
From the outbreak of last year's pandemic to the current stabilization, the country has issued relevant policies from multiple aspects such as finance, regulations, and finance to support the development of the cultural industry. While the pandemic halted people's travels, it could not control the speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention and control period. However, due to many companies vying to enter the online market, the competitive environment within the cultural industry is quite intense. Many traditionally offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, within these short two years, many successfully transformed enterprises emerged. These companies relied heavily on the diversified strategic model to accelerate transformation and upgrades, achieving rewarding results in the diversified development models and revenue channels during the pandemic prevention and control period, such as the transformations undertaken by Sanqi Mutual Entertainment during the pandemic, providing a model worth emulating for most gaming companies[3].
2. A Brief Analysis and Classification of Diversified Strategies
(1) A Brief Analysis of Diversified Strategies
The diversified strategy was proposed by Igor Ansoff, the father of strategic management. In his book "What is Corporate Strategy," he mentioned the classifications of diversified strategy. This globally influential strategic model is involved in the management policies of various countries, so much so that today every company, big or small, seeks to establish itself based on the developmental model of diversified strategy[4].
(2) 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 modes derived from diversified strategies have distinct meanings. Horizontal diversification refers to a company using the original conditions provided by the market to produce new products that meet new user demands, thereby driving market consumption. Vertical integration is where a company, based on its development, extends vertically and uses the product industry chain to penetrate other market fields to seek new consumers. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the existing scope of production, with the entire process realized through the metamorphosis of existing technology. Conglomerate diversification emphasizes the expansion and change of business scope more, with companies needing to expand business scope through linkage with raw materials, technology, and markets related to their products[5].
3. The Impact of Diversified Strategies on Gaming Company Performance
It can be said that during the operation of all gaming companies, the impact of diversified strategies on gaming company performance is divided into two parts: the change of operation mode and the shift of strategic planning. The effects gradually generated from these two changes lead to the improvement of company performance. The impact of diversified strategies is multi-faceted. This paper will analyze and study the impact of diversified strategies on gaming company performance, taking Sanqi Mutual Entertainment Game Company as an example[6].
(1) Change of Operation Mode
Currently, the primary operation scope of Sanqi Mutual Entertainment Game Company is quite extensive, which also stems from the advantages brought by diversified strategies. The company's business not only involves the operation of interactive entertainment, but also fully manages the development and distribution of mobile and web games under Sanqi Mutual Entertainment Game Company. In recent developments, the company continuously innovated in line with contemporary technology, expanding the market to cover films and animations of the subculture, while also shaping and building the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company within music, VR technology, and various types of live broadcasts.
In 1995, when Sanqi Mutual Entertainment Game Company was established, the early development path was not smooth. The precursor of Sanqi Mutual Entertainment Game Company was a small enterprise, initially not involving the operation of games and other entertainment industries in its industry chain, always at risk of being swallowed by the market. However, by relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with subsequent poor operation and market contraction, Sanqi Mutual Entertainment did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60 percent of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd.'s shares. Despite being acquired in name, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset restructuring for various industries with mutual collaboration. Notably, the strategy Sanqi Mutual Entertainment had been operating began to show promise at this time. Sanqi Mutual Entertainment transformed from a single modern cultural creativity company before the acquisition to a dual-main-business listed company with advanced manufacturing and modern cultural creativity coexisting, corresponding to changes in the company's operational strategy and the scope of business encompassed by the original cultural creativity industry.
