This Lord is Very Scientific-Chapter 830 - 762

(Anti-theft, to be posted at the right time.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to everyone. The dissemination of games is no longer confined to rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, iterate, and improve performance with the rapid development of the times. The diversification strategy precisely aligns with the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of enterprise development, is equally applicable to gaming companies. This article, using Sanqi Mutual Entertainment Company as an example, explains the impact of diversification strategy on the performance of gaming companies.

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

The diversification strategy is a market strategy means adopted by enterprises in the process of operation to occupy and explore new markets more extensively. It is also a strategic plan for enterprises to avoid the risks encountered in operating a single business and to enter new business fields with targeted preparation. Applying a diversification strategy in gaming companies can effectively improve company performance, bringing about a process of transformation from quantitative to qualitative change for the development of gaming companies.

1. The macro background of diversification strategy

Entering 2021, with the country's effective control of the pandemic, people's lives have returned to normal, and the economy and culture show a promising recovery trend. On April 30, 2021, according to related data released by the National Bureau of Statistics, the development of the national cultural industry basically recovered to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which occupies a large proportion of the cultural industry. Although the arrival of the pandemic did not have a significant impact on the gaming industry, the inability to conduct offline activities 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 the cultural industry can promote and drive more gaming companies onto the path of sustainable development [2].

From the outbreak of the pandemic last year to the current stabilization, the country has issued relevant policies to support the development of the cultural industry from multiple aspects such as finance, institutions, and finance. Although the pandemic prevented people from traveling, it could not 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 period. However, since every company wants to squeeze into the online market, the competitive environment within the cultural industry is very fierce. Many traditional offline companies were eliminated by society under the influence of the pandemic, but within these short two years, many successfully transformed cultural industries emerged. Most of these companies accelerated their transformation and upgrading relying on the diversification strategy model and also reaped substantial benefits in the increased consumption level during the pandemic prevention period, obtaining more diversified development models and revenue channels. For instance, the transformation that Sanqi Mutual Entertainment Company undertook during the pandemic prevention period is worth emulating for most gaming companies [3].

2. Brief analysis and classification of diversification strategy

(1) Brief analysis of diversification strategy

The diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff, in his book "Corporate Strategy: An Analytical Approach to Business Policy for Growth and Expansion," which mentioned the classification of diversification strategy. This strategy model, which influences the world, has been involved in the management policy guidelines of various countries, making every large and small enterprise today seek a place according to the development model of the 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 four different modes derived from the diversification strategy also have different 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 vertically derive based on their development situation and penetrate the product industry chain into other market fields to seek new consumers. Concentric diversification focuses more on innovation in existing technologies and requires the production of new products within the existing production scope. The entire process is achieved through the transformation of existing technologies. Overall diversification emphasizes the change in business scope expansion, requiring enterprises to link with factors such as raw materials and technology related to their products and markets to expand their business scope [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 gaming company performance is uniformly divided into two parts: the change in operation mode and the shift in strategic planning. These changes gradually produce effects that drive company performance improvement. The impact brought by the diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on the performance of gaming companies [6].

(1) Change in operation mode

Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment but also independently undertakes the R&D and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. Moreover, in recent years, it has continuously innovated by closely following the times and technology, expanding the market layout to include film, television, anime, second dimensions, and also shaping Sanqi Mutual Entertainment Game Company's market cultural industry chain in music, VR technology, and various other fan entertainment businesses. 𝐟𝚛𝕖𝚎𝕨𝗲𝐛𝚗𝐨𝐯𝐞𝕝.𝐜𝗼𝗺

Sanqi Mutual Entertainment Game Company was established in 1995, but its early development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and at first, Sanqi Mutual Entertainment's industry chain did not involve the operation of game and other entertainment industries, always facing the risk of being swallowed by the market. However, relying on the stable development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with subsequent poor operations and market contraction, Sanqi Mutual Entertainment ultimately could 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. Though acquired in name, this acquisition was a development opportunity worth seizing for Sanqi Mutual Entertainment. Under multi-faceted cooperation, the two companies completed asset reorganizations across various industries. It is worth mentioning that the strategic operations that Sanqi Mutual Entertainment had been operating already began to show prominence at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company prior to acquisition to now a dual-main listed company with advanced manufacturing and modern cultural creativity running in parallel. Corresponding changes have also occurred in the company's operational strategy, with the prior coverage of the cultural creative industry business scope. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. pre-existing coverage of the cultural creative industry business scope.