This Lord is Very Scientific-Chapter 828 - 760

(Anti-theft measures, to be issued later.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the game industry in recent years has been evident to the public. The dissemination of games is no longer confined to rigid promotional methods, and the influence of games has gradually expanded into all aspects of life. Correspondingly, game companies also need to continuously integrate resources and innovate to improve performance in line with the rapid development of the times. A diversification strategy just rightly meets the planning needs and development goals within the game industry. In the context of economic globalization, diversification strategy, as the primary mode of enterprise development, is also applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to illustrate the impact of diversification strategy on the performance of game companies.

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

Diversification strategy is a market strategy approach adopted by enterprises in their operations to occupy new markets and to explore new markets, as well as to avoid risks encountered during the operation of a single business, and to strategically plan to enter new fields with targeted preparation. Applying the diversification strategy to game companies can effectively improve company performance, bringing a process of quantitative to qualitative change in the development of game companies.

1. The Macroeconomic Background of Diversification Strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural spheres are witnessing a great recovery. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to pre-pandemic levels[1]. This is very advantageous news for the game industry, which occupies a significant portion of the cultural industry. Although the arrival of the pandemic did not significantly affect the game industry, the inability to conduct offline activities consistently impacted the performance of game companies. With the warming of the cultural industry, for most game companies, this means that the great development and prosperity of the cultural industry can stimulate more game companies to embark on the path of sustainable development[2].

From the outbreak of last year's pandemic to the current stabilization, the state has introduced relevant policies to support the development of the cultural industry from multiple aspects such as finance, regulation, and finance. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. The emergence of more and more new media has driven the development of the cultural industry during the pandemic control period. However, because every company wants to squeeze into the online market, the competitive environment among cultural industries is extremely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But in these short two years, many successfully transformed cultural industries have emerged, and most of these enterprises relied on a diversification strategy model to accelerate transformation and upgrading, gaining fruitful results and obtaining more diversified development models and revenue channels during the pandemic control period when residents' consumption levels significantly improved. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic control period is worth learning from for most game companies[3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversification strategy. This world-influencing strategic model has been involved in the management guidelines and policies of multiple countries, so today every enterprise, large and small, is seeking a place according to the diversification strategy development model[4].

(2) The Classification and Meaning of Diversification Strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The four different modes derived from the diversification strategy have different meanings. Horizontal diversification refers to the production of new products that satisfy new user needs using the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation according to the enterprise's development situation, using product supply chain penetration into other market areas to seek new consumer targets; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, achieving the entire process through the metamorphosis of existing technology; comprehensive diversification focuses more on expanding the scope of operations, requiring enterprises to expand the scope of operations by contacting factors related to their own products, such as raw materials and technology, and markets[5].

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

It can be said that in the operation process of all game companies, the impact of diversification strategy on game company performance is uniformly divided into two parts: the change of operational mode and the shift of strategic planning. The effects produced from these two parts gradually improve company performance. The impact brought by diversification strategy is multifaceted, and this paper will analyze and research the impact of diversification strategy on the performance of game companies, taking Sanqi Mutual Entertainment Game Company as an example[6].

(1) Changes in the Operational Mode

Currently, the main operation scope of Sanqi Mutual Entertainment Game Company is very broad, which is also an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment but also covers the research and publishing of mobile and web games under Sanqi Mutual Entertainment Game Company. In recent developments, it has kept pace with the times and technology through continuous innovation, expanding the market to include film and animation ACG, as well as shaping Sanqi Mutual Entertainment Game Company's market culture industry chain in music, VR technology, and various live broadcasts and other pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was established in 1995, but the initial development road was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, with the risk of being swallowed up by the market at any time. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011, but with poor later operation and market contraction, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. Under the multi-faceted collaboration of the two companies, asset restructuring of various industries was completed. It is worth mentioning that the exhibition strategy that Sanqi Mutual Entertainment always operated was already showing its sharpness. Sanqi Mutual Entertainment Company transformed from being a single modern cultural creative company before the acquisition to today's dual-main-business listed company where advanced production manufacturing and modern cultural creativity run in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment is also undergoing changes, originally encompassing the business scope of cultural and creative industries. In 2014, Wuhu Shunrong Auto Parts Co., Ltd first encompassed the business scope of cultural and creative industries.