This Lord is Very Scientific-Chapter 670 602

(Anti-theft, will be issued in due course.) Abstract: With the advancement of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The mode of game dissemination is no longer confined to rigid promotional methods, and the influence of games has gradually expanded to various aspects of life. Correspondingly, game companies also need to continuously integrate resources, innovate and iterate, and enhance performance in line with the rapid development of the era. The diversification strategy perfectly meets the planning needs and development goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred model for corporate development, is equally applicable to gaming companies. This article 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
The diversification strategy is a market strategy adopted by enterprises during their operations to occupy new markets and explore new markets. It is also a strategic plan used by enterprises to avoid risks encountered during the operation of a single business by proactively and preparedly entering new business fields. The practical application of diversification strategy in game companies can effectively improve company performance, bringing about a qualitative transformation in the development of game companies.
1. The macro background of diversification strategy
In 2021, under the effective control of the pandemic by the nation, people's lives returned to normal, and economic culture showed an excellent recovery trend. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the development of the national cultural industry basically recovered to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which accounts for a large 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 has always affected the performance of game companies. The recovery of the cultural industry signifies for most game companies that the great development and prosperity of the cultural industry can promote and drive more game companies to embark on the path of sustainable development [2].
From the outbreak of the pandemic last year to the current stability, the state has issued relevant 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 speed of online network dissemination. More and more new media have emerged, driving the development of the cultural industry during the epidemic prevention and control. However, since every company wants to squeeze into the online market, the competitive environment within the cultural industry is very fierce. Many traditional offline companies could not withstand the impact of the pandemic and were eliminated by society during this short period, but many successful cultural industry transformations also emerged. These companies mostly rely on the diversification strategy model to accelerate transformation and upgrading, and during the period of significantly improved consumer spending levels during epidemic prevention and control, they have also gained a lot, obtaining more diverse development models and income channels. For example, the transformation made by Sanqi Mutual Entertainment during epidemic prevention and control is worth emulating by most game companies [3].
2. A brief analysis and categorization of diversification strategies
(1) A brief analysis of diversification strategies
The diversification strategy was proposed by the father of strategic management, Igor Ansoff. In his book "Corporate Strategy," he mentioned the categorization of diversification strategies. This globally influential strategic model is involved in management policies and guidelines in multiple countries, leading to every small and large company today seeking to gain a foothold by following the development model of diversification strategy [4].
(2) Categorization and meaning of diversification strategies
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglomerate diversification. The four different models derived from diversification strategies have different meanings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that can satisfy new user needs, thus driving market consumption. Vertical integration refers to the enterprise vertically deriving based on its own development situation, using the product industry chain to penetrate into other market fields to seek new consumer targets. Concentric diversification focuses more on innovation with existing technologies and requires the production of new products within the original production scope, achieving the process through the metamorphosis of existing technologies. Conglomerate diversification focuses more on expanding the range of operations, requiring the enterprise to expand its operational scope by connecting with raw materials, technologies, markets, and other factors related to its products [5].
3. The impact of the diversification strategy on game company performance
It can be said that in the operation process of all game companies, the impact of the diversification strategy on game company performance is uniformly divided into two parts: changes in the operational mode and shifts in strategic planning. The effects gradually arise from these two parts to drive the improvement of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on game company performance using Sanqi Mutual Entertainment Game Company as an example [6].
(1) Changes in operational mode
At present, it can be seen that the main operational scope of Sanqi Mutual Entertainment Game Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but Sanqi Mutual Entertainment Game Company also takes on the entire development and distribution of mobile games and web games under its wing. In recent years, it has constantly innovated in line with the technology of the time, expanding the market layout to include films and anime, and is also shaping Sanqi Mutual Entertainment Game Company's market cultural industry chain in music, VR technology, and various types of live broadcasts and other pan-entertainment businesses.
Sanqi Mutual Entertainment Game Company was founded in 1995, but in the early stages of its development path, it was not smooth sailing. The predecessor of Sanqi Mutual Entertainment Game Company was a small enterprise. At first, the industry chain of Sanqi Mutual Entertainment did not involve the operation of the game and other entertainment industries, always facing the risk of being swallowed by the market. Yet, relying on the steady development of a single industry, Sanqi Mutual Entertainment Company went public in 2011. However, along with poor operations afterwards and market contractions, Sanqi Mutual Entertainment eventually could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainment Technology Co., Ltd. with a 60% stake. Although nominally acquired, for Sanqi Mutual Entertainment, this was a development opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is worth mentioning that Sanqi Mutual Entertainment has always been operating its exhibition strategy, which initially began to show its edge at this time. Sanqi Mutual Entertainment Company transformed from a single modern cultural and creative company before the acquisition into a dual-main business listed company parallel in advanced manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainment is also undergoing changes, and the business scope covered by the original cultural creative industry.