This Lord is Very Scientific-Chapter 734 - 666
(To prevent unauthorized access, will be sent later.) Abstract: With the advancement of technology and the coverage of intelligent networks, the rise of the gaming industry in recent years is evident to citizens. The dissemination methods for games are no longer confined to rigid promotional models, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate, update, and improve performance to keep up with the rapid development of the times. Multistrategy diversification perfectly meets the planning needs and development goals within the gaming industry, and under the background of economic globalization, diversification as a preferred mode of enterprise development is equally applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategies on the performance of gaming companies.
Keywords: Multistrategy Diversification; Gaming Company; Performance; Impact; Sanqi Mutual Entertainment Company
Diversification strategy is a market strategy used by enterprises during operation to occupy new markets and expand into new markets, and it is a strategic plan enterprises adopt to avoid the risks encountered in operating a single business, with targeted and prepared entry into new business fields. Practically applying diversification strategy in gaming companies can effectively improve the company's performance and bring the gaming company's development from quantitative to qualitative changes.
1. The macro background of diversification strategy
Stepping into 2021, with the country's effective control of the pandemic, people's lives returned to normal, and the economic and cultural sectors show a great recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities always impacted gaming companies' performance. The warming of the cultural industry means that for most gaming companies, the major development and prosperity of the cultural industry can promote more gaming companies to embark on a path of sustainable development [2].
From last year's outbreak to the now stable pandemic situation, the country has issued relevant policies to support the development of the cultural industry in terms of finance, system, and finance. Although the pandemic hindered people's travel, it could not control the speed of online network dissemination. The emergence of more and more new media during the pandemic control period has driven the development of the cultural industry. However, since each enterprise wants to squeeze into the online market, the competition environment within the cultural industry is very intense. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, in this short period of two years, many cultural industries have successfully transformed, with many relying on a multistrategy diversification mode to accelerate transformation and upgrading. During the pandemic control period, with the significant increase in residents' consumption levels, they have also gained considerable harvests, acquiring more diversified development modes and channels of capital income. For example, the transformation Sanqi Mutual Entertainment made during the pandemic control period is worth emulating by most gaming companies [3]. 𝒇𝓻𝓮𝓮𝙬𝙚𝒃𝒏𝓸𝙫𝒆𝙡.𝓬𝓸𝒎
2. Analysis and classification of diversification strategies
(1) Brief analysis of diversification strategies
Diversification strategy was proposed by the father of strategic management, Igor Ansoff, who mentioned the classification of diversification strategies in his book "Corporate Strategy." This world-influencing strategic model has been involved in the management policies of many countries, and as a result, every enterprise, big or small, is seeking a place following the development model of diversification strategies [4].
(2) Classification of diversification strategies and their meanings
Diversification strategies are divided into four types: Horizontal diversification, Vertical integration, Concentric diversification, and Conglomerate diversification. The four different modes derived from diversification strategies have distinct meanings. 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 is when enterprises derive vertically based on their development situation, using the product supply chain to penetrate other market fields to seek new consumers; Concentric diversification focuses more on the innovation of existing technology and requires producing new products within the existing production range, achieving this through the transformation of existing technology; Conglomerate diversification pays more attention to the change in the expansion of business scope, enterprises need to link their product-related raw materials, technology, and market factors to expand the business scope [5].
3. The impact of diversification strategies on the performance of gaming companies
It can be said that during the operation of all gaming companies, the impact of diversification strategies on the performance of gaming companies is uniformly divided into two parts: changes in operation mode and shifts in strategic planning. The changes in these two parts gradually produce effects that drive the improvement of company performance. The impact diversification strategies bring are multi-faceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze the impact of diversification strategies on the performance of gaming companies [6].
(1) Change in operating model
At present, the main operating range of Sanqi Mutual Entertainment Game Company is very broad, relying on the advantages brought by diversification strategies. The company's business not only covers the operation of interactive entertainment, but also Sanqi Mutual Entertainment Game Company handles the research and development, and distribution of mobile and web games. In recent developments, it continually innovates by keeping pace with the times, expanding the market to include film, animation, and the two-dimensional domain. It also shapes Sanqi Mutual Entertainment's market cultural industry chain within music, VR technology, and various live streaming and pan-entertainment businesses.
Established in 1995, Sanqi Mutual Entertainment Game Company did not have a smooth development path in the early stages. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and at first, the industry chain of Sanqi Mutual Entertainment did not involve the operation of gaming and other entertainment industries, always having the risk of being swallowed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with poor subsequent operations and market contractions, Sanqi Mutual Entertainment ultimately did not escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Mutual Entertainment Shanghai Technology Co., Ltd. with a sixty percent stake. Although it was nominally acquired, for Sanqi Mutual Entertainment, it was a development opportunity worth grasping. The two companies completed asset restructuring of various industries through multi-party cooperation. It is worth noting that the strategy Sanqi Mutual Entertainment has always operated on was already beginning to show its edge. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to a dual-main business listed company of advanced production manufacturing and modern cultural creativity parallel today. Correspondingly, Sanqi Mutual Entertainment's company operation strategy is also undergoing changes, involving the scope of its original cultural creative industry.
