This Lord is Very Scientific-Chapter 738 - 670

(Anti-theft, will be posted later.) Abstract: Accompanied by technological progress and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The methods of game dissemination are no longer confined to rigid promotional models, and the influence of games has gradually expanded to all aspects of life. Accordingly, game companies also need to integrate resources continuously, innovate, and upgrade to improve performance with the rapid development of the times. A diversified strategy perfectly meets the planning needs and development goals within the gaming industry. In the context of economic globalization, a diversified strategy as a preferred mode of enterprise development is equally applicable to gaming companies. This article illustrates the impact of diversified strategy on the performance of gaming companies, using Sanqi Mutual Entertainment Company as an example.

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

A diversified strategy is a market strategy means adopted by enterprises to capture and explore new markets more extensively during their operations. It is also strategic planning employed by companies to avoid risks encountered during mono-business operations and to enter new business fields with focus and preparation. Applying a diversified strategy to gaming companies can effectively improve the company's performance, bringing a process of quantitative to qualitative change in the development of gaming companies.

1. The macro background of diversified strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives have resumed normalcy, and there is a promising recovery in the economic and cultural scene. On April 30, 2021, according to data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to the pre-pandemic level [1]. This is exceptionally good news for the gaming industry, which occupies a significant proportion of the cultural industry. Although the pandemic didn't considerably affect the gaming industry, the inability to conduct offline activities has always affected the performance of game companies. The recovery of the cultural industry means, for most game companies, that the great development and prosperity of the cultural industry can promote more game companies to embark on a path of sustainable development [2].

From the outbreak of last year's pandemic to the current stabilization, the state has issued relevant policies from multiple aspects such as finance, system, and finance to support the development of the cultural industry. While the pandemic hindered travel, it could not 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. However, as every enterprise wants to break into the online market, the competitive environment in the cultural industry is intense. Many traditional offline enterprises succumbed to the social elimination due to the pandemic's impact during this time, but within these short two years, numerous successfully transformed cultural industries have emerged. Most of these enterprises relied on the diversified strategy model to accelerate transformation and upgrading, gaining significant rewards during the pandemic period when residents' consumption levels significantly increased, achieving more diversified development models and revenue channels. Sanqi Mutual Entertainment Company's transformation during the pandemic is worth emulating by most game companies [3].

2. Brief analysis and classification of the diversified strategy

(1) Brief analysis of the diversified strategy

The diversified strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the classification of diversified strategies. This world-influencing strategic model is involved in management guideline policies in many countries, leading every enterprise to seek a place under the development model of diversified strategy today [4].

(2) Classification and meanings of the diversified strategy

The diversified strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different models derived from the diversification strategy have varying meanings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption. Vertical integration is enterprises vertically derivating based on their development situation, using product industry chains to penetrate other market fields to seek new consumers. Concentric diversification focuses more on innovation in existing technologies, requiring new product production within the existing production scope, achieving the whole process through the transformation of existing technologies. Conglomerate diversification places more emphasis on expanding business scope changes. Enterprises need to connect factors such as raw materials, technologies, and markets related to their products to expand their business scope [5].

3. Impact of diversified strategy on the performance of gaming companies

It can be said that in the operation process of all gaming companies, the impact of diversified strategy on the performance of gaming companies is divided into two parts: change in operating mode and shift in strategic planning. From these two parts, the transformation gradually generates effects that boost the company's performance. The impact brought by the diversified strategy is multifaceted. This paper will analyze and study the impact of diversified strategy on gaming companies' performance using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Change in operating mode

Currently, the main operating areas of Sanqi Mutual Entertainment Game Company are extensive, which is also an advantage brought by the diversified strategy. The company's business not only involves the operation of interactive entertainment but also takes complete charge of the R&D and distribution of mobile games and web games. In recent years, it has continuously innovated in step with contemporary technology, expanding the market to lay out in film, animation, secondary dimensions, and also shaping the cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live streaming and other pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was established in 1995, but its initial development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise. Initially, Sanqi Mutual Entertainment's industry chain did not involve the operation of games and other entertainment industries, always at risk of being absorbed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, with the subsequent poor operations and market tightening, Sanqi Mutual Entertainment couldn't avoid 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, this was a development opportunity worth seizing for Sanqi Mutual Entertainment. The two companies completed asset restructuring of various industries through multi-faceted cooperation. It is worth mentioning that the strategy always operated by Sanqi Mutual Entertainment had already revealed initial success at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural and creative company before being acquired into a dual-main-business listed company concurrently running advanced manufacturing and modern cultural creativity. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainment was also changing, along with the scope of business covered by the cultural and creative industry initially.