This Lord is Very Scientific-Chapter 805 - 737

(Anti-theft, will be sent in due time.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the game industry in recent years is evident to the public. The dissemination method of games is no longer confined to stereotypical promotional modes, and the influence of games has gradually expanded to all aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, and improve performance with the rapid development of the times. The diversification strategy perfectly aligns with the planning needs and development goals within the game industry. In the context of economic globalization, diversification strategy is an enterprise's preferred mode of development and is also applicable to game companies. This paper uses Sanqi Mutual Entertainment Company as an example to explain the impact of diversification strategy on the performance of game companies.

Keywords: diversification strategy; game company; performance; impact; Sanqi Mutual Entertainment Company

Diversification strategy is a market strategy undertaken by enterprises during their operation to capture and expand new markets more effectively. It also serves as a strategic planning approach to anticipate entering new business fields, thereby avoiding risks encountered in the operation of a single business. Applying diversification strategy to game companies can effectively enhance company performance and bring about a transformation from quantitative to qualitative changes in the company's development.

1. The Macro Background of Diversification Strategy

Entering 2021, with strong national control over the pandemic, people's life got back on track, and the economy and culture showed a favorable 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 the pre-pandemic level [1]. This is very favorable news for the game industry, which holds a significant share of the cultural industry. Although the pandemic has not greatly affected the game industry, the inability to conduct offline activities has always impacted the performance of game companies. The warming of the cultural industry means that for most game companies, the significant development and prosperity of the cultural industry can lead more game companies to the path of sustainable development [2].

From last year's outbreak to the current stabilization of the pandemic, the nation has issued policies from various aspects such as finance, regulation, 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 dissemination, and more and more new media has emerged to drive the development of the cultural industry during the pandemic prevention and control period. However, the competition environment within the cultural industry is extremely fierce due to each enterprise's desire to enter the online market. Numerous traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, in this short span of two years, many successfully transformed cultural industries emerged, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention and control period, with significantly improved resident consumption levels, they also reaped substantial benefits, acquiring more diversified development modes and income channels, such as Sanqi Mutual Entertainment Company's transition during the pandemic prevention and control period, which is worth learning by most game companies [3].

2. Brief Analysis and Classification of Diversification Strategy

(a) Brief Analysis of Diversification Strategy

Diversification strategy was proposed by Igor Ansoff, the father of strategic management, in his book "What is Business Strategy," where he mentioned the classification of diversification strategy. This world-influencing strategic model has been involved in management guidelines and policies in multiple countries, so much so that today, every enterprise, large or small, is seeking a place according to the development model of diversification strategy [4].

(b) 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 diversification strategy also have distinct meanings. Horizontal diversification refers to enterprises producing new products that meet users' new needs using the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation based on the enterprise's development situation, using the product industry chain to penetrate other market fields to seek new consumer targets; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, and the entire process is realized through the transformation of existing technology; overall diversification focuses more on expanding the operational scope changes, enterprises need to contact factors such as raw materials, technology, and market related to their products to expand the operational scope [5].

3. The Impact of Diversification Strategy on Game Company Performance

In the operation process of all game companies, it can be said that the impact of diversification strategy on game company performance is uniformly divided into two parts: the change in operational mode and the transfer of strategic planning. From these two changes, effects gradually emerge, driving the improvement of company performance. The impact brought by diversification strategy is multifaceted, and this paper will use Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on game company performance [6].

(1) Change in Operational Mode

Currently, the main operational range of Sanqi Mutual Entertainment Game Company is very broad, which is also reliant on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainment but also wholly manages the research and distribution of mobile games and web games. Moreover, in recent years, with technological advancement, Sanqi Mutual Entertainment Game Company has continuously innovated, expanding the market to layout film and anime subcultures, as well as shaping its market cultural industry chain in music, VR technology, and various live broadcast pan-entertainment businesses.

Established in 1995, Sanqi Mutual Entertainment Game Company's initial development road was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and at first, Sanqi Mutual Entertainment's industry chain did not involve the operation of games and other entertainment industries, always facing the risk of being swallowed by the market. However, relying on the stable development of a single industry, Sanqi Mutual Entertainment Company got listed in 2011, but with subsequent poor 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% of the shares of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. Through multi-faceted collaboration between the two companies, various industry asset restructurings were completed. It is worth noting that the strategic deployment operated by Sanqi Mutual Entertainment has already shown remarkable prospects. Sanqi Mutual Entertainment Company transitioned from a single modern cultural creativity company before being acquired to what is now a dual-core listed company with advanced manufacturing and modern cultural creativity running parallel. Correspondingly, Sanqi Mutual Entertainment's company operational strategy also underwent changes. The scope of business covered by the original cultural creativity industry. This scope was later expanded with the acquisition by Wuhu Shunrong Auto Parts Co., Ltd, marking the company's stride into broader, more diversified business domains.