This Lord is Very Scientific-Chapter 757 - 689

(Anti-theft, to be released later.) Abstract: With the advancement of technology and the pervasive model of smart networks, the rise of the gaming industry in recent years is evident to the public. The methods of game dissemination are no longer limited to rigid promotional models, and the influence of games has gradually expanded into various aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, and enhance performance to keep pace with the rapid development of the era. A diversification strategy perfectly meets the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred model for enterprise development, is equally applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of the diversification strategy on the performance of gaming companies.

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

The diversification strategy is a market strategy means that companies adopt during operations to capture more new markets and explore new markets. It is also a strategic plan that companies use to avoid risks encountered during the operation of a single business and to enter new business fields in a targeted and prepared manner. Implementing a diversification strategy in gaming companies can effectively enhance company performance, bringing a transition from quantitative to qualitative change for the development of gaming companies.

1. The Macro Background of Diversification Strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural recovery is in a great situation. 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 occupies a large proportion of the cultural industry. Although the pandemic did not seriously affect the gaming industry, offline activities...

From the outbreak of the pandemic last year to the current stabilization of the pandemic situation, the state has issued relevant policies from financial, institutional, and financial perspectives to support the development of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of online networks. Increasingly more new media have emerged, driving the development of the cultural industry during pandemic prevention and control, but as all companies strive to enter the online market, the competitive environment within the cultural industry has become very fierce. Many traditional offline companies could not withstand the impact of the pandemic and have been eliminated by society. However, in this short period of two years, many cultural industry transformations have succeeded, and most of these enterprises have accelerated their transformation and upgrade through the diversification strategy model. During the pandemic prevention and control period, with a significant improvement in residents' consumption levels, they have also reaped substantial rewards, gaining more diverse development models and funding channels. For example, the transformation made by Sanqi Mutual Entertainment during the pandemic prevention and control period is worthy of reference for most gaming companies [3].

2. Brief Analysis and Classification of Diversification Strategy

(1) Brief Analysis of Diversification Strategy

The diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff. In his book "What is Corporate Strategy," he mentioned the classification of diversification strategy. This world-influencing strategic model is involved in management policies in many countries, so much so that today every enterprise, big or small, is seeking a place in accordance with the development model of diversification strategy [4].

(2) Classification and Meaning of Diversification Strategy

The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different mode meanings derived from the diversification strategy also differ. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that meet new user demands, thereby driving market consumption; vertical integration is when companies derive vertically based on their development condition and penetrate other market fields using the product industry chain to seek new consumers; concentric diversification focuses more on innovation of existing technology and requires the production of new products within the original production range, realizing the entire process through the transformation of existing technology; conglomerate diversification emphasizes expanding the scope of operations, where companies need to connect relevant raw materials, technology, and market factors related to their products to expand business scope [5].

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

In the operational process of all gaming companies, the impact of a diversification strategy on gaming company performance is generally divided into changes in operational mode and shifts in strategic planning. The gradual emergence of effects from these two reform aspects leads to performance improvement. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of a diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainment Game Company as an example [6].

(1) Changes in Operational Mode

Currently, the main operational scope of Sanqi Mutual Entertainment Game Company is very broad, which is an advantage brought by the diversification strategy. The company's business not only involves interactive entertainment operations but also covers the R&D and publication of mobile and web games. In recent developments, the company keeps pace with era technology and continually innovates, expanding the market to include film and television layout and anime secondary elements. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in pan-entertainment businesses like music and VR technology, and various live broadcasts.

Sanqi Mutual Entertainment Game Company was founded in 1995, but the early development was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainment did not involve gaming or entertainment industry operations, always risking being taken over by the market. However, thanks to the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011, but, with subsequent unappealing operations and market contraction, Sanqi Mutual Entertainment ultimately did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Despite the acquisition in name, it presented Sanqi Mutual Entertainment with a development opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is noteworthy that the strategy operated by Sanqi Mutual Entertainment had already begun to show prominence at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before being acquired to a dual-main-business listed company parallelly operating advanced production manufacturing and modern cultural creativity. The corresponding operational strategy of Sanqi Mutual Entertainment Company was also undergoing changes; the business scope covered by the original cultural creative industry changed. For Wuhu Shunrong Auto Parts Co., Ltd., the business scope covered by the original cultural creative industry in 2014.