This Lord is Very Scientific-Chapter 733 - 665
(Stealing prevention, will be released in due course.) Summary: Accompanied by technological advancements and the coverage model of smart networks, the rise of the gaming industry in recent years is evident to all. The methods of game dissemination are no longer constrained by stereotypical promotional patterns, and the influence of games has gradually expanded to various aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, iterate, and improve performance along with the rapid development of the times. Diversified strategies precisely meet the planning needs and development goals within the gaming industry. In the context of economic globalization, diversified strategies, as the preferred mode for corporate development, are equally 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 company; Performance; Impact; Sanqi Mutual Entertainment Company
Diversified strategies are market strategic measures adopted by enterprises during operation to occupy more and explore new markets, and are also strategic plans used by enterprises to avoid risks encountered during the operation of a single industry, entering new fields with targeted preparation. Applying diversified strategies practically to gaming companies can effectively improve company performance and bring about a process from quantity change to quality change for the development of gaming companies.
1. Macro Background of Diversified Strategies
Entering 2021, with the country's effective control over the pandemic, people's lives have returned to normal, and economic and cultural recovery is in full swing. On April 30, 2021, according to data released by the National Bureau of Statistics, national cultural industry development basically recovered to pre-pandemic levels[1]. For the gaming industry, which occupies a large proportion of the cultural industry, this is very favorable news. Although the arrival of the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities consistently affects 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 more gaming companies to embark on the path of sustainable development[2].
From the outbreak of the pandemic last year to the current stabilization, the country has introduced relevant policies from financial, institutional, and financial aspects to support the development of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network communication. More and more new media have emerged, promoting cultural industry development during the pandemic prevention period. However, since every company wants to squeeze into the online market, the competitive environment within the cultural industry is quite fierce. Many traditional offline companies could not withstand the impact of the pandemic and were eliminated by society. Yet, during these short two years, many culturally transformative enterprises succeeded, relying largely on diversified strategic models to accelerate transformation and upgrading. During the pandemic prevention period, when residents' consumption levels significantly increased, they also harvested abundant benefits, obtaining more diverse development models and income channels. For instance, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning for most gaming companies[3].
2. Brief Analysis and Classification of Diversified Strategies
(1) Brief Analysis of Diversified Strategies
Diversified strategies were proposed by the pioneer of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversified strategies. This strategic model, which affects the world, has been involved in management policies and principles of multiple countries. As a result, every large and small enterprise today seeks a place according to diversified strategy development models[4].
(2) Classification and Meaning of Diversified Strategies
Diversified strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from diversified strategies also have different meanings. Horizontal diversification refers to the enterprise using market-provided original conditions to produce new products that can meet new user needs, thus driving market consumption. Vertical integration is the enterprise deriving vertically based on its own development, using the product industry chain to penetrate other market fields to seek new consumers. Concentric diversification focuses more on the innovation of original technology, requiring the production of new products within the original production scope, achieving transformation through the metamorphosis of original technologies. Overall diversification emphasizes changes in the expansion of operating scope, requiring the enterprise to expand the operating scope by connecting factors related to its product's raw materials and technology, as well as the market[5].
3. The Impact of Diversified Strategies on the Performance of Gaming Companies 𝗳𝗿𝐞𝕖𝘄𝗲𝕓𝗻𝚘𝚟𝕖𝐥.𝚌𝕠𝕞
It can be said that during the operation process of all gaming companies, the impact of diversified strategies on gaming company performance is uniformly divided into two parts: changes in operational models and transfer of strategic planning. Effects emerge from these two parts of transformation, driving the enhancement of company performance. The impact brought by diversified strategies is multi-faceted. This paper will analyze and study the impact of diversified strategies on gaming company performance, using Sanqi Mutual Entertainment Game Company as an example[6].
(1) Changes in Operational Models
Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is very broad, which is an advantage brought by diversified strategies. Company business involves interactive entertainment operation, and the company also oversees the research and distribution of mobile games and web games. In recent development, by keeping up with contemporary technologies and continuously innovating, it has expanded the market to include layout in films and anime subculture, and is also shaping market cultural industry chains belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live broadcast and pan-entertainment businesses.
Established in 1995, the development path of Sanqi Mutual Entertainment Game Company was not smooth in the initial stages. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise that initially did not involve the operation of gaming and other entertainment industries in its industrial chain, constantly at risk of market takeover. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, with the subsequent poor operation and market contraction, Sanqi Mutual Entertainment eventually did 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 valuable development opportunity. Through multi-party collaboration, the two companies completed asset restructuring across various industries. It is worth mentioning that the strategies consistently operated by Sanqi Mutual Entertainment were already beginning to show potential at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before being acquired to the currently dual-major listed company with advanced production manufacturing and modern cultural creativity alongside. Correspondingly, Sanqi Mutual Entertainment's corporate operational strategies also underwent changes, the previously covered business scope of the cultural creative industry.
