This Lord is Very Scientific-Chapter 790 - 722

(Anti-theft, will be sent later.) 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 everyone. The dissemination of games is no longer restricted to rigid propaganda modes, and the influence of games is gradually expanding into various aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate and iterate, and improve performance in line with the rapid development of the times. A diversification strategy perfectly caters to the planning needs and development goals within the gaming industry. In the context of economic globalization, a diversification strategy, as the preferred model for corporate development, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategy on the performance of gaming companies.

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

A diversification strategy is a market strategic measure adopted by enterprises during their operations to capture more new markets and develop new markets. It is also a strategic plan for enterprises to avoid risks encountered in operating a single business by entering new business fields in a targeted and prepared manner. Applying a diversification strategy in gaming companies can effectively enhance company performance and bring about a process of transformation from quantitative change to qualitative change for the development of gaming companies.

1. Macro Background of Diversification Strategy

Entering 2021, with the government's effective control of the pandemic, people's lives have returned to normal, and the economy and culture are showing a great trend of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to the level before the pandemic [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 always impacted the performance of gaming companies. The revival 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 a path of sustainable development [2].

From the outbreak of the pandemic last year to the current stabilization of the pandemic, the government has issued relevant policies to support the development of the cultural industry from multiple aspects such as finance, systems, and finance. Although the pandemic has stopped people from traveling, 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 the fact that all enterprises want to squeeze into the online market, the competitive environment among cultural industries is very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society at this time. However, in the short span of two years, many cultural industries successfully transformed and emerged. Most of these enterprises relied on the diversification strategy model to accelerate transformation and upgrading, and they also gained substantial rewards during the pandemic prevention and control period when consumer levels significantly increased, obtaining more diversified development models and income channels. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention and control period is worth learning from by most gaming companies [3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversification strategy. This influential strategic model is included in the management policy of many countries, so much so that today every large and small enterprise is seeking a place based on the development model of diversification strategy [4].

(2) Classification and Meaning of Diversification Strategy

The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The derived four different modes from the diversification strategy also have different meanings. Horizontal diversification refers to the production of new products that meet new user needs by utilizing the original conditions provided by the market, thereby driving market consumption. Vertical integration is the enterprise's vertical derivation based on its development situation, using the product industry chain to penetrate other market fields to seek new consumers. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, and the entire process is achieved through the transformation of existing technology. Overall diversification focuses more on the expansion of the business scope, where enterprises need to expand the business scope by contacting raw materials and technology related to their products and market factors [5].

3. Impact of Diversification Strategy on Gaming Company Performance

It can be said that in the operations of all gaming companies, the impact of the diversification strategy on gaming company performance is uniformly divided into two parts: the change of operation mode and the transfer of strategic planning. Effects gradually emerge from these two changes to drive the improvement of company performance. The impact brought by the 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) Change of Operation Mode

Currently, the main operation fields of Sanqi Mutual Entertainment Game Company are very extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves interactive entertainment operations but also fully covers the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. Moreover, in recent years, it has constantly innovated following the times and technology, expanding the market to include layouts in film, anime, and second-dimensional culture, and also shaping the unique market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live broadcast and other pan-entertainment businesses.

In 1995, Sanqi Mutual Entertainment Game Company was established. However, the early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainment did not involve the operation of gaming and other entertainment industries, and there was always the risk of being annexed by the market. But with the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, coupled with subsequent poor operations and market tightening, Sanqi Mutual Entertainment eventually could not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth mentioning that the tentative strategy always operated by Sanqi Mutual Entertainment was beginning to show its prowess at this time. Sanqi Mutual Entertainment Company transformed from being a single modern cultural and creative company before the acquisition into a dual-main business listed company integrating advanced production manufacturing and modern cultural creativity. Correspondingly, the operational strategy of Sanqi Mutual Entertainment Company also underwent changes from what was previously covered by the business scope of the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. covered the business scope of the former cultural creative industry.