This Lord is Very Scientific-Chapter 834 - 766

(Anti-theft, will be sent at the time.) Abstract: With the progress of technology and the coverage model of smart networks, the rise of the game industry in recent years is evident to the public. The way of spreading 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 also need to continuously integrate resources, innovate, and improve performance with the rapid development of the era. A diversification strategy fits well with the planning needs and development goals within the game industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise development, is also applicable to game companies. This article explains the impact of diversification strategy on game company performance by taking Sanqi Mutual Entertainment Company as an example.

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

Diversification strategy is a market strategy means that enterprises adopt in the course of operation to occupy more new markets and explore new markets. It is also a strategic plan adopted by enterprises to enter new business fields with targeting and preparation to avoid risks encountered in the operation of a single business. Practically applying diversification strategy to game companies can effectively improve company performance, bringing about a process from quantitative change to qualitative change for the development of game companies.

1. Macro background of the diversification strategy

Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscape shows a promising trend of 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 pre-pandemic levels[1], which is extremely beneficial news for the game industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic did not cause a significant impact on the gaming industry, the inability to conduct offline activities always affects game companies' performance. With the warming 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 onto the path of sustainable development[2].

From last year's outbreak of the pandemic to the current stabilization, the state has issued relevant policies from multiple aspects such as finance, system, and finance to support the development of the cultural industry. Although the pandemic has hindered people's travels, it cannot control the speed of online network spread. More and more new media have emerged, driving the development of the cultural industry during the pandemic prevention period. However, because various enterprises want to squeeze into the online market, the competitive environment among the cultural industries is extremely fierce. Many traditional offline enterprises have been eliminated by society due to the impact of the pandemic. But in just two years, many cultural industries have successfully transformed, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrade. During the pandemic prevention period, where the resident consumption level has significantly increased, they have also gained a lot and obtained more diversified development models and income channels, such as the transformation Sanqi Mutual Entertainment Company made during the pandemic prevention period, which is worth emulating by most game companies[3].

2. Brief analysis and classification of the diversification strategy

(a) Brief analysis of the diversification strategy

Diversification strategy was proposed by the father of strategic management, Igor Ansoff, in his book "What is Corporate Strategy," which mentioned the classification of diversification strategy. This globally influential strategic model is encompassed in the management policies of multiple countries, so that today every big and small enterprise is seeking a place in accordance with the diversification strategy development model[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 meanings of the four different modes derived from diversification strategy are also different. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can meet new user needs, thereby driving market consumption; Vertical integration is enterprises' vertical derivation based on their development situation, utilizing the product industry chain to penetrate other market fields to seek new consumer objects; Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production scope, realizing the transformation through the metamorphosis of existing technology; Overall diversification places more emphasis on expanding operational scope changes, enterprises need to connect factors such as raw materials and technology related to their products and markets to expand operational scope[5].

3. Impact of diversification strategy on game company performance

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 operation mode and transfer of strategic planning. From the evolution of these two parts, effects gradually arise and drive the improvement of company performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainment Game Company as an example to analyze and study the impact of diversification strategy on game company performance[6].

(1) Changes in the operational mode

Currently, the main operating scope of Sanqi Mutual Entertainment Game Company is very broad, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but Sanqi Mutual Entertainment Game Company also undertakes the research and development and distribution of mobile games and web games. In recent years, it has continued to innovate closely following the technology of the times, expanding the market to layout film and television and anime ACG (Anime, Comics, Games). It has also shaped its market cultural industry chain in music, VR technology, and various live broadcast and pan-entertainment businesses.

Sanqi Mutual Entertainment Game Company was established in 1995, but in its early development road, it was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise, and at first, the industrial chain of Sanqi Mutual Entertainment did not involve the operation of game and other entertainment industries, facing the risk of being engulfed by the market at any time. However, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. But with subsequent poor operation and market contraction, Sanqi Mutual Entertainment eventually did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60 percent of the equity of Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. Although it was technically acquired, this was a development opportunity worth grasping for Sanqi Mutual Entertainment. The two companies completed the asset restructuring of various industries in multi-cooperation. It is worth mentioning that the exhibition strategy continuously operated by Sanqi Mutual Entertainment was already showing initial success. Sanqi Mutual Entertainment Company transformed from a single modern cultural creative company to the current dual-main business listed company with advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy was also changing. Initially, the business scope covered by the cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. initially covered the business scope of the cultural creative industry.