51.com: Rise to the Top via Spin-off

51.com was founded as an online social network service provider in August 2005, and entered the online game industry when browser games were becoming popular in China. Although it has continually invested in developing online games, it has not broken into the ranks of the top 10 companies in China. There exist opportunities as well as challenges in the eyes of Pang Shengdong, the founder and CEO of 51.com. On the one hand, this industry has seen very fierce and complex competition in the past years. 51.com has been experiencing brain drain, a common problem in the online game industry. On the other hand, increasing numbers of profitable startups are emerging in this market, especially in the mobile game segment. To overcome the internal and external challenges, Pang decides to apply the spin-off approach within 51.com. This case aims to encourage the participants to discuss Pang’s efforts and the spin-off conducted within 51.com.