Research On The Influence Of International Strategy On Performance Of Perfect World Co.,Ltd.

With the growing spiritual and cultural needs of people and the rising level of Internet technology,games have become the focus of the cultural and entertainment industry and an important part of global digital trade and service trade.Since the beginning of the 21 st century,China’s online game industry has flourished,driving the steady growth of digital entertainment industry.In more than two decades of development,the scale of China’s game market has been expanding.However,while the game industry is developing rapidly,there are also problems such as the uneven level of products and services of game enterprises and the increasing saturation of the domestic market.Game enterprises must seek new market space and profit growth point to avoid fierce domestic competition.In this context,Chinese game companies turn to the international market to obtain profits and enhance their international competitiveness through different international strategies.Perfect World Co.,Ltd.is the leading enterprise of the international development of Chinese game industry and one of the early game enterprises that started internationalization in China.This dissertation takes Perfect World Company as a case study,evaluates its international business performance with the help of entropy method and balanced scorecard,analyzes its international strategy and its impact on business performance in the international market under the current economic background,in order to provide beneficial suggestions for Perfect World Company’s international business.It provides reference for the internationalization development of Chinese game enterprises.First of all,this dissertation introduces the general situation of Perfect World Co.,Ltd and its internationalization process.At the beginning of its establishment,the company determined its internationalization development,which is mainly divided into three stages,starting from game licensing agency,then making foreign direct investment,and finally forming pan-entertainment layout through the internationalization of game platform and esports.The motivations of the company’s internationalization are also studied.The main factors include avoiding domestic market competition,seeking overseas new markets,learning new technologies,and improving international competitiveness.The globalization strategies adopted by Perfect World Co.,Ltd are analyzed in detail,including globalization of market choice,localization into different markets,globalization of R&D and content.After the implementation of the internationalization strategy of Perfect World Co.,Ltd for nearly 20 years,the game categories of Perfect World Co.,Ltd are more diversified,the game style and contents are more global,which greatly improves the brand awareness and influence in the world,and accelerates the process of the company’s internationalization.Secondly,this dissertation uses entropy method and balanced scorecard method to analyze the performance of Perfect World Co.,Ltd,and analyzes the impact of international strategy on performance.Through the data analysis and comprehensive score in the past five years,the results show that the performance score fluctuates,and it has obtained great location benefit,experience curve benefit and scale economy benefit.However,there are also problems such as declining market share at home and abroad,high cost of new technology research and development,poor management of overseas companies,and the linkage between film and game needs to be improved.Finally,based on the analysis of the international strategy of Perfect World Co.,Ltd and its business performance,this dissertation also puts forward some suggestions for the international development of Perfect World Co.,Ltd and other Chinese game companies.Firstly,Perfect World Co.,Ltd should have a thorough understanding of the international market environment and cultivate international talents;secondly,it should continue to increase technology investment and improve innovation ability;thirdly,it should strengthen the internal management of the enterprise and moderately expand the enterprise scale;finally,it should strengthen the interaction between film and game and expand IP cooperation at home and abroad.Chinese game companies can learn from Perfect World Co.,Ltd ’s international development experience.Small and medium-sized game companies can export from international strategies,while large companies can choose different international strategies according to their own characteristics to jointly promote the international development of China’s game industry.