This Lord is Very Scientific-Chapter 756 - 688

(For anti-theft purposes, content will be posted later.) Abstract: With technological advancements and the coverage model of intelligent networks, the rise of the gaming industry in recent years is apparent to the public. The mode of game dissemination is no longer restricted to rigid promotional methods, and the influence of games has gradually expanded to all aspects of life, necessitating game companies to continually integrate resources, innovate, and improve performance to keep pace with rapid development. A diversification strategy perfectly meets the planning needs and development goals within the gaming industry. Amidst economic globalization, diversification strategy, as the preferred mode of enterprise development, is equally applicable to game companies. This paper illustrates the impact of diversification strategy on game company performance, using Sanqi Mutual Entertainment Company as an example.

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

Diversification strategy is a market strategy tool employed by enterprises during operation to capture new markets and expand existing ones, and to avoid risks encountered when operating a single business. It involves strategic planning to strategically and proactively enter new business fields. Applying diversification strategy to game companies can effectively enhance company performance, bringing a transformative process from quantitative to qualitative changes in game company development.

1. Macroscopic Background of Diversification Strategy

Entering 2021, with the country's effective control over the pandemic, people's lives returned to normal, presenting an excellent recovery trend in economic and cultural spheres. On April 30, 2021, according to the National Bureau of Statistics, cultural industry development nationwide has basically returned to pre-pandemic levels [1]. This is particularly favorable for the gaming sector, which holds a significant share in the cultural industry. Although the pandemic's arrival did not greatly impact the gaming sector, the inability to conduct offline activities constantly affected game company performance. The cultural industry's warming for most game companies signals that significant development and prosperity within the cultural sector can promote and foster more game companies for sustained development [2].

From last year's pandemic outbreak to the current pandemic stabilization, the country has instituted policies from financial, institutional, and financial aspects to support cultural industry development. The pandemic may have stopped people from traveling, but it has not slowed down online network dissemination speed. More new media have emerged during the pandemic control period, driving cultural industry development. However, as each company strives to enter the online market, the competitive environment within the cultural industry is quite intense. Numerous traditional offline enterprises succumbed to pandemic impact and were eliminated, but within these short two years, many successful transitioning cultural industries emerged. These enterprises mostly relied on diversification strategy models to accelerate transformation and upgrades. During the pandemic control period, when resident consumption levels notably increased, they also reaped abundant benefits, acquiring diversified development models and income channels. The transformation Sanqi Mutual Entertainment underwent during the pandemic control 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 pioneer of strategic management, Igor Ansoff. In his work "What is Business Strategy," he categorizes diversification strategy, a world-influencing strategy model that is included in management policy guidelines of many countries, to the extent that today, enterprises of all sizes are seeking a place following diversification strategy development models [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 distinct modes derived from diversification strategy have different meanings. Horizontal diversification refers to enterprises utilizing original market conditions to produce new products meeting users' needs, thereby driving market consumption. Vertical integration is enterprises developing vertically based on their situation, using product industry chains to penetrate other market fields and seek new consumer groups. Concentric diversification focuses more on innovation using existing technology, requiring production of new products within existing production scope, achieved through the metamorphosis of existing technology. Conglomerate diversification emphasizes expansion of operational scope changes, requiring enterprises to connect factors related to their products, such as raw materials, technology, and markets, to expand operational scope [5].

3. Diversification Strategy Impact on Game Company Performance

It can be said that in all game company operations, diversification strategy impacts game company performance, uniformly divided into two parts: changes in operational mode and shifts in strategic planning. From these two parts, the transformation gradually generates effects enhancing company performance. The impacts of diversification strategy are multifaceted. This paper will analyze and research the impact of diversification strategy on game company performance, using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Changes in Operational Mode

Currently, Sanqi Mutual Entertainment Game Company's main operational scope is extensive, relying on advantages brought by diversification strategy. The company's business not only involves interactive entertainment operation but also solely holds the development and distribution of mobile games and web games. In recent development, it keeps pace with technological advances and continually innovates, expanding market layout to include film and anime sectors. It also shapes Sanqi Mutual Entertainment Game Company's market cultural industry chain within music, VR technology, and various live-streaming and pan-entertainment businesses.

Founded in 1995, Sanqi Mutual Entertainment Game Company did not always have a smooth developmental path initially. Its predecessor was a small enterprise, with its industry chain not involving game and entertainment sectors initially, always at risk of being swallowed by the market. Relying on steady development of single industry, Sanqi Mutual Entertainment listed in 2011, but due to later poor operations and market contraction, it 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 acquired in name, for Sanqi Mutual Entertainment, this was a worthwhile development opportunity. Through multi-faceted cooperation, the two companies completed various industry asset restructuring. Notably, the operational strategy that Sanqi Mutual Entertainment has been operating revealed its prowess at this point. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creative company before the acquisition to a dual-main listed company with advanced production manufacturing and modern cultural creativity parallel, corresponding to changes in Sanqi Mutual Entertainment Company's operational strategy. Previously covered business scopes by cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially cultural creative industry covered business scopes.