This Lord is Very Scientific-Chapter 761 - 693

(Anti-theft, post when the time comes.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the game industry in recent years is evident to the populace. The dissemination of games is no longer confined to rigid promotional modes, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate updates, and improve performance with the rapid development of the era. The diversification strategy precisely meets the planning needs and development goals within the game industry. Under the background of economic globalization, the diversification strategy, as the preferred development model for enterprises, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategy on the performance of gaming companies.

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

The diversification strategy is a market strategic means adopted by enterprises during operations to capture new markets and expand new ones. It is also a strategic plan that enterprises need to adopt to avoid risks encountered in operating a single business, entering new business fields intentionally and prepared. Applying the diversification strategy to gaming companies can effectively improve company performance, bringing a process from quantitative to qualitative change in the development of gaming companies.

1. The macro background of the diversification strategy

Entering 2021, under the strong control of the pandemic by the nation, people's lives have returned to normal, and the economy and culture have shown a situation of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the national cultural industry development has basically restored to the pre-pandemic level [1]. This is extremely beneficial for the game industry, which occupies a large proportion of the cultural industry. Although the pandemic did not bring great impact to the gaming industry, the inability to carry out offline activities has always affected the performance of gaming companies. The warming of the cultural industry means great development and prosperity for most gaming companies, which can promote and lead more gaming companies onto a path of sustainable development [2].

From the outbreak of the pandemic last year to the stabilization now, the country has promulgated relevant policies from multiple aspects such as finance, systems, and finance to support the development of the cultural industry. Although the pandemic hindered people's travel, it could not control the speed of online network propagation. An increasing number of new media emerged, driving the cultural industry development during the pandemic prevention period. However, as enterprises all tried to enter the online market, the competitive environment within the cultural industry became extremely fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society, but in just these two years, numerous culturally transitioned enterprises emerged successfully. Most of these enterprises accelerated their transition and upgrading relying on the diversification strategy model, harvesting substantial gains during the pandemic prevention period when resident consumption levels clearly increased, acquiring more diversified development modes and income channels, such as the transition Sanqi Mutual Entertainment Company made during the pandemic prevention period, which is worth learning from for most gaming companies [3].

2. A brief analysis and classification of the diversification strategy

(a) Brief analysis of the diversification strategy

The diversification strategy was proposed by Igor Ansoff, the progenitor of strategic management. In his written work "What is Enterprise Strategy," he mentioned the classification of diversification strategies. This strategic model which influences the world is involved in many nations' management guidelines and policies, to the extent today every enterprise, big or small, seeks a place following the diversification strategy development model [4].

(b) Classification and meaning of the diversification strategy

Overall, the diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and holistic diversification. The meanings of the four different modes derived from the diversification strategy also differ. Horizontal diversification refers to enterprises utilizing the original market conditions provided to produce new products that meet new consumer needs, thereby driving market consumption. Vertical integration means enterprises vertically derive according to their development situation, penetrating the product industry chain into other market fields to seek new consumers. Concentric diversification emphasizes innovation of existing technology, requiring new product production within existing production, achieving it through transformation of existing technology. Holistic diversification emphasizes expanding the scope of operations, requiring enterprises to connect with related raw materials and technology and market factors for expansion [5].

3. The impact of diversification strategy on gaming companies' performance

It can be said that in the operations of all gaming companies, the impact of diversification strategy on gaming company performance is unified in the change of operation mode and transfer of strategic planning. Effects gradually emerge from these two parts of transformation, driving the enhancement of company performance. The impact brought by diversification strategy is multifaceted. This paper analyzes and researches the impact of diversification strategy on gaming company performance taking Sanqi Mutual Entertainment Game Company as an example [6].

(1) Change in operation mode

Presently, the main operation range of Sanqi Mutual Entertainment Game Company is very extensive. This relies on the advantages brought by the diversification strategy. The company's business not only involves interactive entertainment operations, but also encompasses the research and publication of mobile games and web games. In recent developments, keeping pace with era technology, it continuously innovates, expanding the market to the layout of films and anime subcultures, and shapes the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live entertainment businesses.

Established in 1995, Sanqi Mutual Entertainment Game Company did not have a smooth path in its early development journey. Sanqi Mutual Entertainment Game Company was originally a small enterprise, and initially, its industry chain did not involve game and entertainment industry operations, always at risk of being annexed by the market. However, relying on steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. Yet, with subsequent poor operation 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. Although nominally acquired, it was a development opportunity worth grasping for Sanqi Mutual Entertainment. The two companies completed asset restructuring of various industries under multifaceted cooperation. It is noteworthy that the strategic operation Sanqi Mutual Entertainment had been conducting began to show prominence. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before acquisition to a dual main business listed company combining advanced manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Mutual Entertainment's operational strategy also underwent changes, expanding the business scope covered by the original cultural creative industry.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially expanded the business scope covered by the original cultural creative industry.