This Lord is Very Scientific-Chapter 752 - 684

(Anti-theft, to be posted later.) Abstract: With the advancement of technology and the pervasive 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 stereotypical promotional models, and the influence of games has gradually expanded to various aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate iterations, and improve performance along with the rapid development of the era. Diversification strategy aptly meets 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 game companies. This article takes Sanqi Mutual Entertainment Company as an example to illustrate the impact of diversification strategy on a game company's performance.

Keywords: Diversification strategy; Game company; Performance; Influence; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategy means that enterprises adopt in order to capture and explore new markets during the operation process. It is also strategic planning that enterprises use to avoid the risks encountered in operating a single business and enter new business fields with targets and preparedness. Applying diversification strategy practically to game companies can effectively improve company performance, bringing about a transformation from quantitative change to qualitative change in the company's development.

1. Macro background of diversification strategy

Entering 2021, with the country's effective control over the pandemic, people's lives are returning to normal. The economic and cultural sectors also present a great recovery trend. On April 30, 2021, according to 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 good news for the gaming industry, which is a significant part of the cultural industry. Although the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. The warming of the cultural industry implies that for most gaming companies, the cultural industry's great development and prosperity can promote and drive more gaming companies towards a path of sustainable development [2].

From last year's outbreak to now, with the pandemic stabilized, the country has issued relevant policies to support the development of the cultural industry from various aspects such as finance, institutions, and finance. Although the pandemic blocked people's travel, 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, as each 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 pandemic's impact and were eliminated by society. Yet, in just two short years, many cultural industries successfully transformed. Most of these enterprises relied on a diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention period, when residents' consumption levels significantly increased, they also reaped considerable gains, gaining more diverse development models and funding sources. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning from for most gaming companies [3].

2. Brief analysis and classification of diversification strategy

(1) Brief analysis of diversification strategy

Diversification strategy was proposed by Igor Ansoff, the father of strategic management. In his book "Corporate Strategy," he mentioned the classification of diversification strategies. This world-influencing strategic model is involved in the management policies of multiple countries, so that today every large and small enterprise seeks to gain a foothold by following the development model 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 model connotations derived from the diversification strategy also differ. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can meet users' new demands, thus driving market consumption. Vertical integration is when enterprises derive vertically according to their development situation and use the product industry chain to penetrate other market fields to seek new consumers. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, realizing the entire process through the transformation of existing technology. Conglomerate diversification focuses more on the changes in expanding business scope, where enterprises need to link materials, technology, markets, and other factors related to their products to expand the business scope [5].

3. Impact of diversification strategy on game company performance

It can be said that in the operating process of all game companies, the impact of diversification strategy on game company performance is uniformly divided into two parts: the change of operating model and the transition of strategic planning. From these two parts, changes gradually produce effects and drive performance improvements. The influence brought by diversification strategy is multi-faceted; this paper will analyze the impact of diversification strategy on game company performance using Sanqi Mutual Entertainment Game Company as an example [6]. 𝙛𝓻𝒆𝓮𝒘𝙚𝙗𝒏𝙤𝙫𝓮𝒍.𝓬𝒐𝙢

(1) Change of operating model

Currently, the main operating 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 also solely manages the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. In recent years, the company has continuously innovated by keeping pace with technological advancements, expanding the market layout to film and anime subcultures. Additionally, the company shapes its market cultural industry chain in music, VR technology, and various entertainment businesses such as live streaming.

In 1995, Sanqi Mutual Entertainment Game Company was established, but the development path in the early stages was not smooth. The predecessor of Sanqi Mutual Entertainment was a small enterprise, and its industry chain initially did not involve the operation of games and other entertainment industries, always facing the risk of being swallowed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011. But as subsequent operations were unsustainable and the market contracted, Sanqi Mutual Entertainment eventually could not escape being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was nominally an acquisition, it was a development opportunity worth seizing for Sanqi Mutual Entertainment. Through multilateral collaboration, the two companies completed the asset restructuring of various industries. It is noteworthy that the strategic operation always conducted by Sanqi Mutual Entertainment had begun to show its potential at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creativity company before acquisition into a dual-listed company integrating advanced production manufacturing and modern cultural creativity, with the corresponding operational strategy changing within the sectors previously covered by the cultural creativity industry.