This Lord is Very Scientific-Chapter 743 - 675

(Anti-theft, will post later.) 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 all. The dissemination method of games is no longer confined to rigid promotional models, and the influence of games has gradually expanded to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate and iterate, and improve performance in order to keep pace with the rapid development of the times. The diversification strategy precisely meets the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of enterprise development, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to illustrate the impact of diversification strategy on the performance of gaming companies.

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

Diversification strategy is a market strategy measure adopted by enterprises in the operational process to capture more new markets and expand new markets. It is also a strategic plan adopted to avoid risks encountered in operating a single business venture, and to enter new business fields in a targeted and prepared manner. Applying diversification strategy practically to gaming companies can effectively improve company performance and bring a process of quantitative change to qualitative change for the development of gaming companies.

1. The Macro Background of Diversification Strategy

Entering 2021, with the effective control of the pandemic by the state, people's lives are getting back on track, and the economy and culture are showing a promising recovery trend. 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 the pre-pandemic level[1]. This is very favorable news for the gaming industry, which constitutes a large proportion of the cultural industry. Although the arrival of the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities always affected the performance of gaming companies. Through the recovery of the cultural industry, for most gaming companies, this means that the great development and prosperity of the cultural industry can promote more gaming companies to embark on the path of sustainable development[2].

From last year's outbreak of the pandemic to the current stabilization, the state has issued relevant policies to support the development of the cultural industry from various aspects such as finance, systems, and finance. Although the pandemic has hindered people's ability to travel, it cannot 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, because every enterprise wants to squeeze into the online market, the competitive environment within the cultural industry is very 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 successful transformations have emerged in the cultural industry, and most of these enterprises rely on the diversification strategy mode to accelerate transformation and upgrading, both receiving substantial rewards during the pandemic prevention period when the levels of consumer spending were significantly increased, achieving more diversified development models and income channels. For example, the transformation carried out by Sanqi Mutual Entertainment during the pandemic prevention period is worthy of reference for most gaming companies[3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentions the classification of diversification strategy, and this world-influencing strategic mode has been involved in the management guidelines and policies of many countries, to the extent that today every large and small enterprise is seeking a foothold following the development mode of diversification strategy[4].

(2) Classification and Meaning of Diversification Strategy

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 enterprises using the original conditions provided by the market to produce new products that can meet new user needs, thus driving market consumption; vertical integration is when an enterprise, based on its own development, vertical derivatives to infiltrate other market fields to seek new consumer targets; concentric diversification focuses more on the innovation of existing technology and requires the production of new products within the existing production scope, the whole process is achieved through the transformation of existing technology; conglomerate diversification focuses more on the expansion of the business scope, enterprises need to expand their operating range by contacting raw materials, technology, and markets related to their own products[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 divided into two parts: changes in operation mode and shifts in strategic planning. From these two aspects of change, effects are gradually produced to drive the enhancement 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, taking Sanqi Mutual Entertainment Game Company as an example[6].

(1) Changes in Operation Mode

Currently, the main operation scope 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 Sanqi Mutual Entertainment Game Company also takes complete charge of the research and launch of mobile games and web games. In recent years' development, keeping pace with the times and technology has continually innovated, expanding the market to layout films and anime ACG (Anime, Comics, Games). It is also crafting its market cultural industry chain in music, VR technology, and various live broadcasts and other pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was founded in 1995, but the road to early development was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small business. Initially, Sanqi Mutual Entertainment's industry chain 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 management and market contraction in later operations, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with a 60% equity stake. Although it was nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies, through multi-party collaboration, completed the asset restructuring of various industries. It is worth mentioning that Sanqi Mutual Entertainment has been operating a standing strategy that had already begun to show its edge at this time. Sanqi Mutual Entertainment Company transformed from a singular modern cultural creative company before the acquisition to a dual-main business listed company with parallel advanced manufacturing and modern cultural creation. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment has been changing, covering the business range of cultural and creative industries before 2014 by Wuhu Shunrong Auto Parts Co., Ltd.