This Lord is Very Scientific-Chapter 802 - 734:

(Anti-theft, will be sent in due time.) 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 public, the way of game distribution is no longer confined to rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Corresponding game companies also need to continuously integrate resources, innovate, iterate, and improve performance in line with the rapid development of the times. A diversification strategy perfectly meets the planning needs and development goals within the game industry, under the background of economic globalization, the diversification strategy as the preferred mode of development for enterprises is equally applicable to game companies. This article uses Sanqi Mutual Entertainment Company as an example to illustrate the impact of diversification strategy on the performance of game companies.

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

Diversification strategy is a market strategy approach adopted by enterprises in operation to conquer and explore new markets more effectively, and also to avoid risks encountered in the operation of a single business, adopting strategic planning to enter new business fields with targeting and preparation. Applying diversification strategy practically to game companies can effectively improve company performance, bringing the development of game companies from quantity change to quality change.

1. Macro background of diversification strategy

Entering 2021, under the strong control of the pandemic by the state, people's lives are back on track, and the economy and culture are displaying a promising trend of revival and prosperity. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the development of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is very favorable news for the game industry, which accounts for a significant proportion of the cultural industry. Although the arrival of the pandemic has not greatly impacted the game industry, the inability to conduct offline activities has always affected game companies' performance. The recovery of the cultural industry means significant development and prosperity can drive more game companies to embark on a pathway of sustained development[2].

From last year's pandemic outbreak to the current pandemic stabilization, the state has promulgated relevant policies to support the development of the cultural industry from multiple perspectives such as fiscal, institutional, and financial. Although the pandemic blocked people's travel footsteps, it couldn't control the speed of online network dissemination. The emergence of more new media has driven the development of the cultural industry during the pandemic prevention period. But since many enterprises want to squeeze into the online market, leading to fierce competition in the cultural industry, many traditional offline enterprises couldn't withstand the impact of the pandemic and were eliminated by society. However, within these short two years, many successfully transformed cultural industries emerged. These enterprises mostly relied on diversification strategy mode to accelerate transformation and upgrading, achieving fruitful results during the pandemic prevention period when residents' consumption levels significantly increased, acquiring more diversified development models and income channels. For example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth learning for most game companies[3].

2. Simplified analysis and classification of diversification strategy

(1) Simplified analysis of diversification strategy

The diversification strategy was proposed by the pioneer of strategic management, Igor Ansoff. In his writing, "What is Corporate Strategy," he mentioned the classification of diversification strategy. This globally impacting strategic model is involved in the management policy in many countries, so today, every small and large enterprise seeks a place according to the development mode 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 overall diversification. The four different modes derived from the diversification strategy have different meanings. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that meet new user needs, thus driving market consumption; Vertical integration is when enterprises derive vertically according to their development situation, utilizing the product industry chain to penetrate other market fields seeking new consumer targets; Concentric diversification focuses more on the innovation of original technologies, needing to produce new products within the original production range, realizing through the transformation of existing technology; Overall diversification focuses more on expanding the scope of operation changes, enterprises need to connect with factors related to their products such as raw materials, technology, and market to expand the scope of operation[5].

3. Impact of diversification strategy on game company performance

It can be said that in the operation process of all game companies, the impact of diversification strategy on game company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. From these two parts of reform gradually generating effects driving the company's performance improvement, the impact brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainment Game Company as an example to analyze the impact of diversification strategy on game company performance[6].

(1) Changes in the operation model

Currently, the main operation scope of Sanqi Mutual Entertainment Game Company is very extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves interactive entertainment operations but also single-handedly manages the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company. Moreover, in recent development, it continuously innovates by keeping pace with the era of technology, expanding the market to layout film and animations in ACG, also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainment Game Company in music, VR technology, and various live entertainment businesses.

Sanqi Mutual Entertainment Game Company was founded in 1995, but the early development path was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small-scale enterprise, initially the industrial chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, always facing the risk of being absorbed by the market. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company was listed in 2011, but accompanying later poor operation and market tightening, 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, for Sanqi Mutual Entertainment, this is a development opportunity worth grasping. Through multi-party collaboration, the two companies completed asset restructuring in various industries, notably, the exhibiting strategies Sanqi Mutual Entertainment has been operating is beginning to show prominence. Sanqi Mutual Entertainment company transformed from a single modern cultural creative company before the acquisition to a dual-listed company with parallel advanced manufacturing and modern cultural creativity. Corresponding to Sanqi Mutual Entertainment, the company operation strategy is also experiencing changes, the scope of business covered by the original cultural creative industry is evolving. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. covered the scope of business of the original cultural creative industry.