This Lord is Very Scientific-Chapter 827 - 759

(For anti-theft purposes, will be sent later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The methods of game dissemination are no longer restricted to rigid promotional models, and the influence of games is gradually expanding to all aspects of life. Correspondingly, game companies need to continuously integrate resources, innovate, update, and improve performance with the rapid development of the times. Diversification strategies precisely meet the planning needs and development goals within the gaming industry. In the context of economic globalization, diversification strategies, as the preferred mode of enterprise development, are equally applicable to gaming companies. This article explains the impact of diversification strategies on the performance of game companies using Sanqi Mutual Entertainment Company as an example.

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

Diversification strategy is a market strategy measure adopted by enterprises during their operations to occupy new markets and explore new markets more. It is a strategic planning used to avoid risks encountered in operating a single business and to enter new business fields with targeted preparedness. Applying diversification strategies in gaming companies can effectively enhance company performance and bring a process of transformation from quantitative to qualitative for their development.

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, showing a great trend of recovery in the economy and culture. On April 30, 2021, based on pre-pandemic levels in the country[1], this is particularly favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Despite the pandemic, the gaming industry was not greatly impacted, yet the inability to conduct offline activities always affects the performance of game companies. Through the revival of the cultural industry, for most game companies, this implies that the great development and prosperity of the cultural industry can promote more game companies to embark on a path of sustainable development[2].

From last year's pandemic outbreak to the current stabilization, the state has issued relevant policies to support the development of the cultural industry in financial, institutional, and financial aspects. Although the pandemic has hindered people's travel, it cannot control the speed of dissemination online. The emergence of more and more new media has driven the development of the cultural industry during the pandemic prevention period, but because all enterprises want to squeeze into the online market, the competitive environment within the cultural industry is very fierce. Many traditional offline enterprises have been eliminated by society due to the pandemic impact during this time, but in just two years, many successfully transformed cultural industries have emerged. These enterprises mostly relied on diversification strategies to accelerate transformation and upgrading, and gained significant results during the pandemic prevention period when residents' consumption levels were significantly improved. They acquired more diverse development models and sources of income, for example, the transformation made by Sanqi Mutual Entertainment Company during the pandemic prevention period is worth referencing for most game companies[3].

2. Brief analysis and classification of diversification strategies

(a) Brief analysis of diversification strategies

Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic management. In his book "What is Corporate Strategy," he mentioned the classification of diversification strategies. This world-influencing strategic model is involved in the policy guidelines of multiple countries, so today every large and small company seeks a place according to the development model of diversification strategies[4].

(b) Classification and meaning of diversification strategies

Diversification strategies are divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different derivative modes from diversification strategies each have different meanings. Horizontal diversification refers to enterprises producing new products that meet user new needs using the original conditions provided by the market, thus driving market consumption; vertical integration is when enterprises vertically derive according to their development situation, penetrating into other market fields using the product industry chain to seek new consumers; concentric diversification emphasizes innovation based on existing technology, requiring new product production within the existing production range, realizing the entire process through the transformation of existing technology; overall diversification focuses on expanding operation range variations, requiring enterprises to contact the raw materials and technology related to their products, and market etc., to expand their operating range[5].

3. The impact of diversification strategies on game company performance

In the operation process of all game companies, the impact of diversification strategies on game company performance can be said to be uniformly divided into two parts: the change of operation mode and the shift of strategic planning. From these two parts of change, the effect gradually drives company performance improvement. The influence brought by diversification strategies is multi-faceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategies on game company performance[6].

(1) Change of operation mode

Currently, the main operation range of Sanqi Mutual Entertainment Game Company is very extensive, which is the advantage brought by diversification strategies. The company's business not only involves the operation of interactive entertainment, but also undertakes the development and distribution of mobile games and web games. In recent years of development, the company keeps innovating by closely following technological advances of the times, expanding the market to layout in film and animation industry, also shaping Sanqi Mutual Entertainment Game Company's market cultural industry chain in music, VR technology, and various live broadcast and other pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was founded in 1995, but its initial development path was not smooth. The predecessor of Sanqi Mutual Entertainment Game Company was a small company, initially not involving in the operation of game and entertainment industries within the industry chain. There was always a risk of being annexed by the market. But relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, accompanied by poor operation in later stages and market contraction, Sanqi Mutual Entertainment eventually did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed asset restructuring of various industries through multifaceted collaboration. It is worth mentioning that the exhibition strategy that Sanqi Mutual Entertainment has always operated already showed its promising future at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company before the acquisition to now a dual-industry listed company with advanced manufacturing and modern cultural creativity parallel. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainment has also been changing, the business scope covered by the original cultural creative industry. In 2014, the business scope covered by the original cultural creative industry.