| SH online game company was built up in January2010in Beijing, and had a registered capital of10million RMB. After receiving two rounds of financing, its assets reached450million RMB. SH became a new force in Chinese online gaming industry. It concentrated on creating boutique online games filled with Chinese elements. Under this core concept, it built a diversity entertainment brand including interactive entertainment, literary work and film-television programs, and Internet music. Developing till early2012, SH online game company filed for bankruptcy to a court because of capital, management, market, technology and other factors after failing in mergers and acquisitions. It became another case in venture failure of online game enterprises in the Internet.This article analyzed the two-year process of venture failure of SH online game company with theories of entrepreneurship, firm growth and enterprise risk management, combining the competitive landscape and developing trends of online game industry. The article found that there is contingency and inevitability in the failure of SH online game company. SH online game company faced outside and inside risks when starting. The article identified the outside and inside risks reviewing the theory of risk identification. In the outside risks, SH online game company faced severe trade competitions. Online enterprises like SH lack support policies, facing multi-management and risks from competitive giant enterprises, web games, mobile games and other new games in the games industry, and the loss of online game players. In the inside risks, it primarily faced management risk, financial risk, market risk and technical risk. The article comprehensively evaluated the entrepreneurial risks of SH online game company based on risk evaluation model of online game enterprises, and also suggested the control policy of resolving the outside and inside, technical, market and financial risks of SH online game company. |
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