This Lord is Very Scientific-Chapter 749 - 681

(Anti-theft, will be sent later.) Abstract: Accompanied by technological progress and the coverage model of smart networks, the rise of the gaming industry in recent years has been witnessed by the public. The dissemination methods of games are no longer confined to stereotypical promotion models, and the influence of games has gradually expanded to various aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate, update, 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. In the context of economic globalization, the diversification strategy, as a preferred model for enterprise development, is also applicable to gaming companies. This article exemplifies the impact of the diversification strategy on the performance of gaming companies by taking Sanqi Mutual Entertainment Company as an example.

Keywords: Diversification strategy; Game company; Performance; Impact; Sanqi Mutual Entertainment

Diversification strategy is a market strategy adopted by enterprises during operations to capture and expand new markets, while also being a strategic plan used to avoid risks encountered in operating a single business and carefully and preparedly enter into new business fields. Applying the diversification strategy to gaming companies can effectively improve company performance and bring a transformative process from quantitative change to qualitative change for the development of gaming companies.

1. Macro Background of the Diversification Strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives are back on track, and the outlook for economic culture is promising. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry had basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities always affected the performance of gaming companies. With the cultural industry's recovery, this means that for most gaming companies, the great development and prosperity of the cultural industry can promote and drive more gaming companies towards continuous development [2].

From last year's pandemic outbreak to the current pandemic stability, the state has issued relevant policies from various aspects such as finance, institutions, and finance to support the development of the cultural industry. Although the pandemic has hindered people's 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 and control period. However, since every company wants to squeeze into the online market, the competitive environment within the cultural industry has become very intense. Many traditional offline companies could not withstand the pandemic's impact and were eliminated by society. But in these short two years, many successful cultural industry transformations have emerged, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, achieving substantial returns during the pandemic prevention period with significantly improved consumer spending levels, obtaining more diversified development models and funding sources, such as Sanqi Mutual Entertainment Company's transformation during the pandemic prevention period, which is worth learning from for most gaming companies [3].

2. Brief Analysis and Classification of the Diversification Strategy

(1) Brief Analysis of the Diversification Strategy

The diversification strategy was proposed by the godfather of strategic management, Igor Ansoff, in his book "Corporate Strategy," where he mentioned the classification of the diversification strategy. This world-influencing strategic model is involved in management policies in multiple countries, so much so that today, every company, big or small, is seeking to establish itself according to the diversification strategy development model [4].

(2) Classification and Meaning of the Diversification Strategy

The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The meanings derived from these four different models are also distinct. Horizontal diversification refers to the enterprise utilizing the original conditions provided by the market to produce new products that can meet new user needs, thereby driving market consumption; vertical integration, on the other hand, is the enterprise's vertical extension based on its development situation, penetrating other market fields with the product industry chain to seek new consumers; concentric diversification emphasizes innovation of existing technology and requires the production of new products within the existing production scope, achieving transformation through innovation of existing technology; conglomerate diversification emphasizes the expansion of business scope changes, requiring enterprises to expand their operations by associating with raw materials, technology, and market factors related to their own products [5].

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

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

(1) Change of Operational Model

Currently, Sanqi Mutual Entertainment Game Company's main operational scope is very extensive, which is also dependent on the advantages brought by the diversification strategy. The company's business not only involves interactive entertainment operations but also entirely manages the development and distribution of mobile games and web games. In recent years, by keeping pace with technological advancements, it has continuously innovated, expanding the market to cover film and television, anime, and two-dimensional culture, as well as shaping its market cultural industry chain in music, VR technology, and various live entertainment businesses.

Founded in 1995, the development path of Sanqi Mutual Entertainment Game Company was not smooth in the early stages. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, Sanqi Mutual Entertainment's industry chain did not involve the operation of games and other entertainment industries, constantly 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 poor operations and market contraction later, Sanqi Mutual Entertainment eventually did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was nominally acquired, for Sanqi Mutual Entertainment, it was a development opportunity worth seizing. Under multi-party collaboration, the two companies completed asset restructuring of various industries. It is worth mentioning that the long-operated exhibition strategy by Sanqi Mutual Entertainment was beginning to show its prominence. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before acquisition to a dual-main industry listed company that synchronously advanced in advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainment's corporate operational strategy was also undergoing changes, with the initial business range covered by the cultural creative industry. In 2014, the business range covered by the cultural creative industry had encompassed.