This Lord is Very Scientific-Chapter 816 - 748

(Anti-theft, will be released in due course.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The dissemination of games is no longer confined to rigid promotional models, and the influence of games has gradually expanded to various aspects of life. Correspondingly, gaming companies also need to continually integrate resources, innovate and iterate, and improve performance with the rapid development of the times. The diversification strategy perfectly aligns with the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode for enterprise development, is also applicable to gaming companies. This paper illustrates the impact of diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainment Company as an example. 𝑓𝘳𝑒𝑒𝓌𝘦𝘣𝘯ℴ𝑣𝘦𝑙.𝘤𝑜𝑚

Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategy employed by enterprises in operations to occupy more and explore new markets. It is also a strategic plan made by enterprises to avoid the risks encountered in operating a single business and to enter new business fields with targets and preparations. Applying the diversification strategy to gaming companies can effectively enhance company performance and bring about a process of quantitative to qualitative change in the development of gaming companies.

1. The Macroeconomic Background of Diversification Strategy

Entering 2021, under the strong control of the epidemic by the government, people's lives are back on track, and the economy and culture are presenting a good recovery situation. 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 pre-epidemic levels[1]. This is a very favorable message for the gaming industry, which occupies a significant portion of the cultural industry. Although the arrival of the epidemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. Through the warming of the cultural industry, this means for most gaming companies that the great development and prosperity of cultural industries can promote more gaming companies to embark on the path of sustainable development[2].

From the outbreak of the epidemic last year to the current stabilization, the government has issued relevant policies from multiple aspects such as finance, institutions, and finance to support the development of the cultural industry. Although the epidemic blocked people's travel steps, it could not control the speed of online network dissemination. More and more new media have emerged, promoting the development of cultural industries during the epidemic prevention and control period. However, because all enterprises want to squeeze into the online market, the competitive environment within the cultural industry is extremely fierce. Many traditional offline businesses could not withstand the impact of the epidemic and were eliminated by society. But in just these two years, many culturally transformed industries emerged successfully. Most of these businesses relied on the diversification strategy model to accelerate transformation and upgrading, and they also gained a lot, acquiring more diversified development models and income channels during the epidemic prevention and control period when residents' consumption levels significantly increased. For example, the transformation made by Sanqi Mutual Entertainment Company during the epidemic prevention and control period is worth learning from for most gaming companies[3].

2. Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

The diversification strategy was proposed by the founding father of strategic management, Igor Ansoff. In his book "Corporate Strategy," the classification of diversification strategy is mentioned. This world-influencing strategic model is involved in the management policies of many countries, so today every large and small enterprise is seeking a place according to 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 conglomerate diversification. The four different models derived from the diversification strategy also have different meanings. Horizontal diversification refers to the production of new products that meet new user needs by enterprises using the original conditions provided by the market to drive market consumption. Vertical integration is where enterprises develop vertically according to their development status, using the product industry chain to penetrate other market fields to seek new consumer objects. Concentric diversification focuses more on the innovation of existing technology, needing to produce new products within the existing production range, and the whole process is achieved through the transformation of existing technology. Conglomerate diversification focuses more on changing the scope of operations, enterprises need to connect with raw materials and technology related to their products and market factors to expand the scope of operations[5].

3. The Impact of Diversification Strategy on the Performance of Gaming Companies

It can be said that in the operation process of all gaming companies, the impact of diversification strategy on the performance of gaming companies is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. The effects gradually generated from these two parts promote the improvement of company performance. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainment Game Company as an example[6].

(1) Change in Operation Mode

At present, the main operation range of Sanqi Mutual Entertainment Game Company is very extensive, which is also an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but also undertakes the research and development and publishing of mobile and web games under Sanqi Mutual Entertainment Game Company. And in recent years' development, it has continuously innovated by keeping up with the era's technology, expanding the market to layout film, anime and the second dimension, also shaping the market culture industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live broadcast and other pan-entertainment businesses.

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 company, initially, the industry chain of Sanqi Mutual Entertainment did not involve the operation of gaming and other entertainment industries, and was always at risk of being swallowed by the market. However, with steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011, but with later poor operations and a tightening market, Sanqi Mutual Entertainment ultimately 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 nominally acquiring, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset reorganization of various industries under multi-party cooperation. It is worth mentioning that the strategic operations that Sanqi Mutual Entertainment had been operating were beginning to shine at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before acquisition to the current dual-main-business listed company with advanced production manufacturing and modern cultural creativity running in parallel. Correspondingly, the company's operation strategies of Sanqi Mutual Entertainment were also undergoing changes, the business scope originally covered by the cultural creative industry.