This Lord is Very Scientific-Chapter 813 - 745

(Anti-theft, will be released later.) Summary: With the progress of technology and the coverage mode of the smart network, the rise of the game industry in recent years is evident to all citizens. The dissemination platforms of games are no longer limited to rigid promotional models, and the influence of games has gradually expanded to all aspects of life. Accordingly, game companies also need to continuously integrate resources, innovate and upgrade, and improve performance with the rapid development of the era. The diversification strategy exactly meets the planning needs and development goals within the game industry. In the context of economic globalization, the diversification strategy, as the preferred mode of enterprise development, is also applicable to game companies. This article explains the impact of the diversification strategy on the performance of game companies using Sanqi Mutual Entertainment Company as an example.

Keywords: Diversification strategy; game company; performance; impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategic tool adopted by enterprises during operations to capture new markets, expand into new markets, and to mitigate risks encountered in the operation of single businesses. It is a strategic plan aimed at entering new business fields with targets and preparation. Applying the diversification strategy to game companies can effectively improve company performance, bringing a process from quantitative change to qualitative change for the development of game companies.

1. The Macro Background of Diversification Strategy

Stepping into 2021, under the effective control of the pandemic by the country, people's lives returned to normal, and culture and economy showed a promising recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry development had basically recovered to the pre-pandemic levels [1]. This is very favorable news for the game industry, which holds a significant proportion within the cultural industry. Even though the arrival of the pandemic did not greatly affect the game industry, the inability to conduct offline activities has consistently impacted the performance of game companies. With the revival of the cultural industry, for most game companies, this signifies that the large-scale development and prosperity of the cultural industry can promote and lead more game companies onto a path of continuous development [2].

From the outbreak of last year's pandemic to the current stabilization of the pandemic, the country has issued supportive policies for cultural industry development in terms of finance, institutions, and finance, etc. Although the pandemic has halted people's travel, it has not controlled the speed of online network propagation. More and more new media emerged, driving the development of the cultural industry during pandemic prevention and control. However, due to various enterprises trying to squeeze into the online market, the competitive environment within the cultural industry is exceedingly fierce. Many traditional offline enterprises could not withstand the pandemic impact and were eliminated by society. Yet, within these short two years, numerous successful transformations within the cultural industry emerged, and these enterprises primarily relied on the acceleration of transformation and upgrade through the diversification strategy model, Hence they gained considerably during the period of improved resident consumption levels amid pandemic prevention and control, obtaining more diversified development modes and funding income channels, such as the transformation undertaken by Sanqi Mutual Entertainment Company during pandemic prevention and control, which is worth emulating by most game companies [3]. 𝐟𝕣𝗲𝕖𝕨𝗲𝐛𝗻𝗼𝐯𝗲𝚕.𝗰𝚘𝐦

2. Brief Analysis and Classification of Diversification Strategy

(i) Brief Analysis of Diversification Strategy

The diversification strategy was proposed by Igor Ansoff, the father of strategic management. In his book "What is Corporate Strategy," he mentioned the classification of diversification strategies. This strategy mode, which has influenced the world, is involved in the management policy of multiple countries, thus today, every

overall diversification. The four different mode meanings derived from the diversification strategy each differ. Horizontal diversification refers to an enterprise producing new products satisfying new user needs using the original market conditions as a catalyst for market consumption. Vertical integration is when an enterprise vertically develops based on its development situation, infiltrating other market fields through the product industry chain to seek new consumer targets. Concentric diversification focuses more on the innovation of existing technology, requiring production of new products within the existing production scope, The whole process relies on the transformation of existing technology to realize it. Overall diversification focuses more on changing the business scope expansion, Enterprises need to connect related raw materials, technology, and market factors with their products to expand the business scope [5].

3. The Impact of Diversification Strategy on Game Companies' Performance

In the operation process of all game companies, the impact of diversification strategy on game companies' performance is uniformly divided into two parts: change of operation mode and transfer of strategic planning. The effects from these two transformations gradually promote the improvement of company performance. The impact brought by the diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on game companies' performance using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Change of operation mode

Currently, the main operation scope of Sanqi Mutual Entertainment Game Company is very extensive as it relies on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but also encompasses the development and distribution of smartphone and web games under Sanqi Mutual Entertainment Game Company. Furthermore, in recent development, it has continually innovated alongside era technology, expanding the market layout to include film, animation, the second dimension, and even shaping the market cultural industry chain in music, VR technology, and various live entertainment businesses owned by Sanqi Mutual Entertainment Game Company.

Sanqi Mutual Entertainment Game Company was established in 1995, but the development path in its early stages was not smooth. Sanqi Mutual Entertainment Game Company originated as a small enterprise, initially not involving in the operation of games and other entertainment industry within its industry chain, facing constant risks of being swallowed by the market. Yet, relying on the stable development of a single industry, Sanqi Mutual Entertainment Company got listed in 2011, although due to later stage mismanagement and market contraction, Sanqi Mutual Entertainment ultimately did not escape the fate of acquisition.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd.. Even though nominally it was acquired, for Sanqi Mutual Entertainment this was a development opportunity worth grasping. The two companies completed asset restructuring across multiple collaborations, It is worth mentioning that the exhibition strategy consistently operated by Sanqi Mutual Entertainment reached maturity at this time.

Diversification strategy is a market strategic tool adopted by enterprises during operations to capture new markets and expand into new markets in order to mitigate risks encountered in the operation of single businesses.

It is a strategic plan aimed at entering new business fields with targets and preparation. Applying the diversification strategy to game companies can effectively improve company performance.

Stepping into 2021, under the effective control of the pandemic by the country, people's lives returned to normal, and the culture and economy showed a promising recovery trend. On April 30, 2021, according to the National Bureau of Statistics.