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Chapter five hundred and ninety-eight

(Anti-theft, will be posted when the time comes.) Abstract: With the advancement of science and technology and the coverage model of intelligent networks, the rise of the game industry in recent years has been witnessed by all the citizens. The communication method of games is no longer limited to the rigid propaganda model, and the influence of games has gradually

Expanded to all aspects of life, corresponding game companies also need to continuously integrate resources, innovate and improve with the rapid development of the times, and the diversification strategy just caters to the planning needs and development goals of the game industry. In economic globalization

In this context, diversification strategy as the preferred model for corporate development is also applicable to game companies. This article takes Sanqi Interactive Entertainment as an example to illustrate the impact of diversification strategy on the performance of game companies.

Keywords: diversification strategy; game company; performance; impact; Sanqi Interactive Entertainment

Diversification strategy is a market strategic means adopted by enterprises in order to occupy more new markets and develop new markets in the operation process. It is also the need for enterprises to avoid the risks encountered in the process of operating a single business, and to enter the market in a targeted and prepared manner.

Strategic planning adopted in new business areas. Practical application of diversification strategies to game companies can effectively improve company performance and bring about a process from quantitative change to qualitative change for the development of game companies.

1. Macro background of diversification strategy

Entering 2021, with the country's strong control of the epidemic, people's lives are on the right track, and the economy and culture are also showing a good situation of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry

Development has basically returned to pre-epidemic levels [1], which is very favorable news for the game industry, which accounts for a large proportion of the cultural industry. Although the arrival of the epidemic has not greatly affected the game industry, the online

The inability to carry out the following activities has always affected the performance of game companies. Through 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 to embark on a sustainable journey.

The path of development[2].

From the outbreak of the epidemic last year to the current stabilization of the epidemic, the state has promulgated relevant policies from fiscal, institutional, financial and other aspects to support the development of the cultural industry. Although the epidemic has stopped people from traveling, it cannot control the spread of the virus online.

Speed, the emergence of more and more new media is driving the development of the cultural industry during the epidemic prevention and control period. However, as various companies want to squeeze into the online market, the competitive environment among cultural industries is very fierce. Many traditional offline companies

At this time, they were unable to withstand the impact of the epidemic and were eliminated by society. However, in just two years, many cultural industries that have successfully transformed have emerged, and most of these enterprises relied on diversified strategic models to accelerate transformation and upgrading.

During the epidemic prevention and control period, when residents' consumption levels increased significantly, they also gained a lot, and gained more diversified development models and capital income channels. For example, the transformation made by Sanqi Interactive Entertainment during the epidemic prevention and control period is worthy of most games.

The company can learn from [3].

2. Brief analysis and classification of diversification strategies

(1) Brief analysis of diversification strategy

Diversification strategy was proposed by Ingor Ansoff, the originator of strategic management. In his book "What is Corporate Strategy", he mentioned the classification of diversification strategy. This strategic model that affects the world is widely used in many countries.

It is involved in the management principles and policies of every country, so that today every large and small enterprise is seeking a place according to the development model of diversified strategies [4].

(2) Classification and meaning of diversification strategies

Diversification strategies are divided into four types: horizontal diversification, vertical integration, concentric circle diversification, and overall diversification. The four different models derived from diversification strategies also have different meanings. Horizontal diversification refers to

It is the enterprise that uses the original conditions provided by the market to produce new products that can meet the new needs of users, thereby driving market consumption; vertical integration is the vertical derivation of the enterprise based on its own development situation, using the product industry chain to penetrate into other markets

Seek new consumer objects in the field; concentric circle diversification pays more attention to the innovation of original technology, which requires the production of new products within the original production scope, and the entire process is realized through the transformation of the original technology; overall diversification pays more attention to

To expand the scope of business, companies need to contact raw materials and technologies related to their own products, as well as market and other factors to expand their business scope [5].

3. The impact of diversification strategy on game company performance

It can be said that in the operation process of all game companies, the impact of diversification strategies on game company performance can be divided into two parts: changes in operating models and transfers of strategic planning. The changes in these two parts gradually produce effects that drive the company's performance improvement.

, The impact of diversification strategy is multifaceted. This paper will take Sanqi Interactive Entertainment Game Company as an example to analyze and study the impact of diversification strategy on game company performance [6].

(1) Changes in operating model

At present, the main business scope of Sanqi Interactive Entertainment Game Company is very wide. This is also relying on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainment, but also the mobile games and web pages of Sanqi Interactive Entertainment Game Company.

It also handles the research, development and distribution of games. In recent years, it has kept pace with the technology of the times and continued to innovate, expanding the market to the second dimension of film and television and animation, and also shaping the pan-entertainment business such as music and VR technology, as well as various live broadcasts.

It belongs to the market culture industry chain of Sanqi Interactive Entertainment Game Company.

Sanqi Interactive Entertainment Game Company was established in 1995, but its early development path was not smooth sailing. Sanqi Interactive Entertainment Game Company’s predecessor was a small enterprise. At the beginning, Sanqi Interactive Entertainment’s industry chain did not involve games.

The operations of other entertainment industries are at risk of being swallowed up by the market at any time. However, relying on the steady development of a single industry, Sanqi Interactive Entertainment was listed in 2011. However, with poor operations and market contraction in the later period, Sanqi Interactive Entertainment finally

Still did not escape the fate of being acquired.

In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Interactive Entertainment Shanghai Technology Co., Ltd. with 60% of its equity. Although it was acquired in name, it was a development opportunity worth seizing for Sanqi Interactive Entertainment.

, the two companies completed the asset reorganization of various industries with the cooperation of multiple parties. It is worth mentioning that the development strategy that Sanqi Interactive Entertainment has been operating has begun to take shape at this time. Sanqi Interactive Entertainment has changed from a single modern culture before the acquisition

The creative company has transformed into a dual-main business listed company with advanced manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Interactive Entertainment's corporate operation strategy has also changed. The business scope originally covered by the cultural and creative industry

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