This Lord is Very Scientific-Chapter 732 - 664

(Anti-theft, will be sent later.) Abstract: With technological advancements and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the nation. The dissemination method of games is no longer confined to rigid promotional models, and the influence of games has gradually expanded into all aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate and iterate, and improve performance amidst the rapid development of the times. A diversification strategy aptly meets the planning needs and development goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred mode of enterprise development, is also applicable to game companies. This paper uses Sanqi Mutual Entertainment Company as an example to explain the impact of the diversification strategy on the performance of gaming companies.

Keywords: Diversification strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategy tool used by enterprises in their operations to capture new markets and expand into new markets. It is also a strategic plan employed to mitigate risks encountered during the operation of a single business and strategically enter new business fields. Applying the diversification strategy to gaming companies can effectively improve company performance, bringing about a transformation from quantitative changes to qualitative changes in the development of game companies.

1. Macro background of diversification strategy

Entering 2021, with the country's effective control of the pandemic, people's lives have returned to normal, and the economy and culture are showing a great recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to pre-pandemic levels [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 pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted 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 onto the path of sustainable development [2].

From the outbreak of last year's pandemic to the current pandemic stability, the country has issued relevant policies to support the development of the cultural industry from various aspects such as finance, systems, and finance. While the pandemic has blocked people's 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 pandemic prevention and control period. However, due to various enterprises wanting to squeeze into the online market, the competitive environment among the cultural industries is very fierce. At this time, many traditional offline enterprises succumbed to the impact of the pandemic and were eliminated by society. But in these short two years, many cultural industries that successfully transitioned have emerged. These enterprises mostly accelerated transformation and upgrading relying on the diversification strategy model, and during the pandemic prevention and control period when residents' consumption levels increased significantly, they also gained substantial benefits, obtaining more diversified development modes and income channels. For example, the transformation Sanqi Mutual Entertainment made during the pandemic prevention period is worth learning for most game companies [3].

2. Brief analysis and classification of diversification strategy

(a) Brief analysis of diversification strategy

Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic management. In his book "Corporate Strategy," he mentioned the classification of diversification strategy. This world-influencing strategic model is involved in management guidelines and policies in many countries, so that today every enterprise, large and small, is seeking a place in the development model according to the diversification strategy [4].

(b) Classification and meaning of diversification strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different modes derived from the diversification strategy also have different meanings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption. Vertical integration is the enterprise's vertical derivation based on its development situation, using the product industry chain to penetrate into other market fields seeking new consumers. Concentric diversification focuses more on innovation of existing technology and requires the production of new products within the original production scope, realizing the entire process through the transformation of existing technology. Conglomerate diversification emphasizes expanding the scope of operations, where the enterprise needs to expand its scope of operations by linking relevant raw materials, technology, market, and other factors related to its products [5].

3. Impact of diversification strategy on the performance of gaming companies

In the operation process of all gaming companies, the impact of diversification strategy on the performance of gaming companies can be said to be uniformly divided into two parts: the change in operation mode and the shift in strategic planning. The effects from changes in these two parts gradually lead to the improvement of the company's performance. The impact of the diversification strategy is multifaceted. This thesis will analyze and study the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainment Game Company as a case study [6].

(1) Change in operation mode

At present, the main scope of operations of Sanqi Mutual Entertainment Game Company is very broad, which is the advantage brought by the diversification strategy. The company's business involves not only the operation of interactive entertainment, but also the development and distribution of mobile games and web games entirely under the Sanqi Mutual Entertainment Game Company. In recent years of development, it has continuously innovated following the times and technology by expanding the market into the layout of film and animation ACG (Anime, Comic, Game). It is also shaping its market cultural industry chain in pan-entertainment businesses such as music, VR technology, and various live broadcasts, belonging to Sanqi Mutual Entertainment Game Company.

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 initially, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, always facing the risk of being swallowed by the market. However, relying on the stable development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, with poor operational performance and market contraction in the later stages, Sanqi Mutual Entertainment still could not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with 60% equity. Although it was nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. Under multi-party cooperation, the two companies completed the asset restructuring of various industries. It is worth mentioning that the strategic operations that Sanqi Mutual Entertainment had been operating had begun to show signs of success. Sanqi Mutual Entertainment Company transformed from a single modern cultural and creative company before the acquisition to a dual-main business listed company with both advanced production and manufacturing and modern cultural creativity now. Correspondingly, the operational strategy of Sanqi Mutual Entertainment has also been undergoing change, regarding the scope of business covered by the original cultural and creative industry.