This Lord is Very Scientific-Chapter 755 - 687

(To prevent theft, will distribute when the time comes.) Abstract: Accompanied by the progress of technology and the coverage model of intelligent networks, the rise of the game industry in recent years is evident to the nation, the mode of spreading games is no longer confined to rigid promotional models, and the influence of games is gradually expanding to various aspects of life, correspondingly, game companies need to constantly integrate resources, innovate iterations, and improve performance in line with the rapid development of the times, and diversification strategies precisely cater to the planning needs and development goals within the game industry. In the context of economic globalization, diversification strategy as the preferred mode of enterprise development also applies to gaming companies. This article explains the impact of diversification strategy on the performance of gaming companies through the example of Sanqi Mutual Entertainment Company.

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

Diversification strategy is a market strategy measure adopted by enterprises in the operation process to occupy new markets and develop new markets more extensively. It is also a strategic plan adopted by enterprises to avoid risks encountered in the operation of a single business. Applying diversification strategy to gaming companies can effectively improve company performance, bringing the development of game companies from quantitative changes to qualitative transformations.

1. The macro background of diversification strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives returned to normal, and the economy and culture also showed a vibrant recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry basically returned to pre-pandemic levels [1], which is extremely favorable news for the game industry, which occupies a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the game industry, the inability to carry out offline activities always impacted the performance of gaming companies. Through the recovery of the cultural industry, for most gaming companies, this means the big development and prosperity of the cultural industry can promote and drive more gaming companies onto the path of sustainable development [2].

From last year's outbreak to the current stabilization of the pandemic, the state has promulgated relevant policies to support the development of the cultural industry in terms of finance, system, and finance, among others. Although the pandemic blocked people's travel, it could not control the speed of online network dissemination. An increasing number of new media have emerged, driving the development of the cultural industry during the pandemic prevention period. However, due to various enterprises wanting to enter the online market, the competitive environment among cultural industries is extremely fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society, but during these short two years, many successfully transformed cultural industries also emerged, and most of these enterprises accelerated transformation and upgrades relying on the diversification strategic model. During the pandemic prevention period, when residents' consumption levels increased significantly, they also gained rich harvests, obtaining more diversified development models and funding channels. For example, the transformation carried out by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth emulating by most game 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 "What is Corporate Strategy," he mentioned the classification of diversification strategy. This strategic model influencing the world has been involved in management policy guidelines in multiple countries, so that today every enterprise, large or small, is seeking a place according to the diversification strategy development model [4]. 𝙛𝒓𝓮𝙚𝔀𝒆𝒃𝓷𝒐𝓿𝙚𝓵.𝙘𝒐𝒎

(2) Classification and meaning of diversification strategy

Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different derived models also have different meanings. Horizontal diversification refers to the enterprise utilizing the initial conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption; vertical integration, then, is the enterprise according to its own development situation extends vertically, utilizing the product industry chain to penetrate other market fields seeking new consumer objects; concentric diversification focuses more on the innovation of existing technology, needing to produce new products within the existing production scope, the whole process is realized by the metamorphosis of existing technology; overall diversification focuses more on expanding business scope changes, enterprises need to contact factors such as raw materials and technology related to their products and markets to expand the business scope [5].

3. Impact of diversification strategy on game companies' performance

It can be said that in the operational process of all game companies, the impact of diversification strategy on game companies' performance is uniformly divided into two parts: changes in the operational mode and shifts in strategic planning. From these two parts of the transformation gradually generates effects that drive the improvement of company performance. The impact brought by diversification strategy is multifaceted, and this paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on game companies' performance [6].

(1) Changes in operational mode

Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is very broad, which is also due to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainment but also Sanqi Mutual Entertainment Game Company under mobile games and web games research and distribution also fully undertake, and in recent years' development, it constantly innovates in keeping up with the times and technology, expanding the market to layout film and TV and animation secondary dimensional fields, also in music and VR technology and various live entertainment businesses building the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company.

The establishment of Sanqi Mutual Entertainment Game Company was in 1995, but the development road was not smooth in the early period, the predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the Sanqi Mutual Entertainment's industrial chain did not involve the operation of game and other entertainment industries, anytime there was a risk of being swallowed by the market, but relying on the steady development of a single industry Sanqi Mutual Entertainment Company was listed in 2011, but as operations deteriorated and the market contracted in the later stage, 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 60% equity. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies, through multi-faceted collaboration, completed the asset restructuring of various industries. It is worth mentioning that the operational strategy that Sanqi Mutual Entertainment has always operated began to show its sharp edge at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to a dual-main business listed company of advanced manufacturing and modern cultural creativity parallel. Correspondingly, Sanqi Mutual Entertainment's company operating strategy is also undergoing changes, the initially encompassed business scope of the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially encompassed business scope of the cultural creative industry.