This Lord is Very Scientific-Chapter 815 - 747

(Anti-theft, to be posted later.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been witnessed by the public, and the dissemination of games is no longer confined to rigid advertising models. The influence of games has gradually expanded to all aspects of life, correspondingly requiring game companies to continuously integrate resources, innovate and iterate in line with the rapid development of the times, and improve performance. Diversification strategy precisely meets the planning needs and development goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode for corporate development, 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 measure taken by enterprises in their operation process to occupy more new markets and expand new ones. It is also a strategic plan that enterprises need to adopt to avoid the risks encountered in operating a single business by entering new business fields with preparation and focus. Applying diversification strategy to game companies can effectively improve company performance, bringing about a qualitative change from a quantitative one in the development of game companies.

1. The Macro Background of Diversification Strategy

Stepping into 2021, with the effective control of the epidemic by the state, people's lives have returned to normal, and the economy and culture have shown a strong recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the development of the national cultural industry has basically returned to the pre-epidemic level [1]. This is very good news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not significantly affect the gaming industry, the inability to carry out offline activities has always impacted the performance of game companies. With the recovery of the cultural industry, for most game companies, this means that the great development and prosperity of the cultural industry can promote and drive more game companies towards sustainable development [2].

From last year's outbreak to the current stabilization of the pandemic, the state has promulgated related policies from multiple aspects such as finance, systems, and finance to support the development of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spreading speed of the online network. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention and control period. However, due to the fact that every company wants to squeeze into the online market, the competitive environment within the cultural industry is extremely fierce. Many traditional offline companies cannot withstand the impact of the pandemic and have been eliminated from society, but many cultural industries have successfully transformed in this short two-year period. These companies mostly rely on diversification strategy mode to accelerate transformation and upgrading, and have also gained substantial rewards during the pandemic prevention and control period with a significant increase in residency consumption levels, obtaining more diverse development models and sources of funding, for example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention and control period is worth learning from by most game companies [3].

2. A Brief Analysis and Classification of Diversification Strategy

(1) A Brief Analysis of Diversification Strategy

Diversification Strategy was proposed by the pioneer of strategic management, Igor Ansoff, in his book "Corporate Strategy." This impactful strategic model is involved in policies and guiding principles for management in several countries, so much so that today every big and small company is seeking a place through diversification strategy development models [4].

It refers to enterprises using the original conditions provided by the market to produce new products that meet new user needs, thereby driving market consumption; vertical integration is when a company extends according to its own development status, using product industry chains to penetrate other market fields to seek new consumers; concentric diversification emphasizes innovation within existing technology, requiring the production of new products within the existing production scope, the whole process is realized through the metamorphosis of existing technologies; overall diversification focuses more on expanding the scope of operations, requiring the company to link raw materials, technology, and market factors related to its own products to expand its scope of operations [5].

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

It can be said that in the operational 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 the transformation of these two parts, effects gradually arise to drive the company's performance improvement, and the impacts brought by diversification strategy are manifold, this paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on the performance of game companies [6].

(1) Changes in the Operation Model

Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is quite extensive, which is also advantageously brought about by diversification strategy. The company's business not only involves the operation of interactive entertainment, but also comprehensively covers the development and distribution of mobile games and web games under Sanqi Mutual Entertainment Game Company, and has, in recent years, continuously innovated in line with epoch-making technology. It has expanded the market to include layout in film, animation, and the secondary dimension, as well as shaping the cultural industry chain of Sanqi Mutual Entertainment Game Company in the music, VR technology, and various live broadcast genres and other pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was established in 1995, but its early development journey was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of games and other entertainment industries, being at any time at risk of being swallowed by the market. However, by relying on the stable development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But along with poor later-stage operation and market contraction, Sanqi Mutual Entertainment ultimately did not escape from being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60 percent equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed various asset restructurings under multi-party collaboration. It is worth mentioning that the strategy operated by Sanqi Mutual Entertainment has at this time begun to show initial promise. Sanqi Mutual Entertainment Company has transformed from a single modern cultural creative company before the acquisition to now successfully adapting its strategic company operation to the advanced interactive entertainment sector, undergoing changes in its strategic company operation, and the scope of business covered by the previously cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. has a cultural creative industry covering...

The dual main business listed company of production manufacturing and modern cultural creativity, corresponding to Sanqi...