This Lord is Very Scientific-Chapter 731 - 663

(Anti-theft, will be released in due course.) 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 method of games is no longer confined to rigid promotion methods, and the influence of games has gradually expanded to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, and improve performance with the rapid development of the times. Diversification strategy just meets the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode for enterprise development, is also applicable to gaming companies. This article explains the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainment Company as an example.

Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategy method adopted by enterprises in the operation process to capture new markets and develop new markets more comprehensively. It is also a strategic planning used by enterprises to avoid risks encountered in operating single businesses by entering new business fields in a targeted and prepared manner. The actual application of diversification strategy in 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. The Macroeconomic Background of Diversification Strategy

Entering 2021, under the strong control of the epidemic by the state, people's lives have returned to normal, and the economic and cultural situation is also showing a great recovery momentum. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the overall development of the national cultural industry has basically recovered to the pre-epidemic level [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the epidemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. Through the warmth of the cultural industry, this means for most gaming companies that the great development and prosperity of the cultural industry can promote and drive more gaming companies onto a sustainable development path [2].

From last year's outbreak to the current stability of the epidemic, the country has promulgated relevant policies from multiple aspects such as finance, system, and finance to support the development of the cultural industry. Although the epidemic has blocked people's steps to travel, it cannot control the speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during the epidemic prevention and control period. However, due to the competition among enterprises to enter the online market, the competitive environment of the cultural industry is very fierce. Many traditional offline enterprises were eliminated by society due to the impact of the epidemic, but in these short two years, many cultural industries have successfully transformed. Most of these enterprises have accelerated transformation and upgrading through diversification strategy mode, and during the epidemic prevention and control period, when resident consumption levels have significantly increased, they have also reaped lucrative results, obtaining more diversified development modes and fund income channels. For example, the transformation made by Sanqi Mutual Entertainment during the epidemic prevention and control period is worth learning from by most gaming companies [3].

2. A Brief Analysis and Classification of Diversification Strategy

(1) A Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff. In his book "Corporate Strategy", he mentioned the classification of diversification strategy. This world-influencing strategic model is involved in the management policy guidelines of multiple countries, so that today every enterprise, no matter how big or small, is seeking a place according to the development mode of diversification strategy [4].

(2) Classification and Meaning of Diversification Strategy

Diversification strategy is divided into four types in total: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different modes derived from diversification strategy also have different meanings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that can meet new user needs, thereby driving market consumption; vertical integration is when enterprises derive vertically according to their development status and use the product industry chain to penetrate into other market fields to seek new consumption targets; concentric diversification focuses more on innovation of existing technology, requiring new products to be produced within the original production range, and the entire process is realized through the metamorphosis of existing technology; conglomerate diversification focuses more on expanding the scope of operations. Enterprises need to expand their business scope by connecting with factors such as raw materials, technology, and markets related to their products [5].

3. The Impact of Diversification Strategy on Gaming Company Performance

It can be said that in the operation process of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: changes in operation mode and changes in strategic planning. The effects produced from these two parts gradually drive the improvement of the company's performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on gaming company performance [6].

(1) Changes in Operation Mode

Currently, Sanqi Mutual Entertainment Game Company's main operation range is very extensive, which relies on the advantages brought by the diversification strategy. The company's business not only involves interactive entertainment operations, but also fully covers research and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, it has kept up with technological advancements and continuously innovated, expanding the market layout to film and animation, and also shaping its market cultural industry chain in various entertainment businesses such as music, VR technology, and live streams.

Sanqi Mutual Entertainment Game Company was established in 1995, but the early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and the industrial chain of Sanqi Mutual Entertainment initially did not involve the operation of games and other entertainment industries, posing a constant risk of being swallowed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011, but with poor later operation and market contraction, Sanqi Mutual Entertainment could not escape the fate of acquisition.

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 various industrial asset restructuring through multi-party collaboration. It is worth mentioning that the expansion strategy always operated by Sanqi Mutual Entertainment was beginning to shine at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before being acquired into a dual-main business listed company engaged in both advanced production manufacturing and modern cultural creativity. Correspondingly, the company operation strategy of Sanqi Mutual Entertainment is also undergoing changes, and the business scope previously covered by the cultural creative industry.