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On Operation Strategies And Evolution Of B2B Platform Based On The Theory Of Two-sided Markets

Posted on:2011-11-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:J H CaoFull Text:PDF
GTID:1119360305956838Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Globalization business development strengthening the global upstream and downstream linkages among enterprises, collaboration becoming more frequent among enterprises, participating in market transactions more efficiency and more quickly, accessing to raw materials as to be the key point of business winning, network information technology continuously improving, as well as information service becoming more professionally, all allow to make the integration of traditional operation and Internet business development to be possible. As globalization, inter-enterprise collaboration, enterprise competition winning demand, network information technology getting more sophisticated and information services continuously improving give birth to the rapid development of Internet economy. B2B e-commerce market, as represented by the Internet economy, provides means for the extension of enterprise supply chain, cost control, profitability increase and brand radiation. And its intrinsic characteristics of high efficiency, low cost, strong ties, radiation widely promote it to be an important component of modern market economy system.Since 2003, the size of Internet market economy in China has the average annual growth rate of 57.36%. Based on this background, industrial scale, number of platforms and service level of B2B e-commerce market in China have made considerable progress, and it is gradually becoming orderly and regulated market system. However, in sharp contrast with theory study of B2B platform, it is just emerging. In the research methods, existing study ignores the B2B platform itself has the characteristics of Two-sided market, the lack of using TSM which is modern industrial organization theory to systematically study B2B platforms. As to study content, existing research mainly concentrated in the B2B platform classification, features, pricing strategies, ignoring platform competition which is market theme, and platform investment options, platform self-network effect to be little involved. Two-sided market theory is to be wide attention by the international economic academia and industry only after the 21st century, and it is the new doctrine that is to be developed, based on network externality theory and multi-product pricing theory. Since 2004, China carried out Two-sided market theory for the study based on the network externalities, and its theoretical system is a gradual process of formation, but not perfect. These imperfections reflected in two aspects. The one is the imperfections of study content. At present, China's Two-sided market research focused on bank cards, media and operating systems, and the study of e-commerce market, which also has obvious Two-sided market characteristics, is relatively small, especially platform evolution and competition studies nearly is blank based on platform ownership structure. Secondly, research methods and tools are far from perfect. Currently, Two-sided market research is too much to rely solely on the static model approach to characterize and analyze the Two-sided market competition, so as to comparative analysis, the dynamic perspective as the means and methods of the study need to be further enriched and expanded.Throughout the full text of this paper, B2B platform structure and behavior characteristics analysis is to be a logical starting point. According to two dimensions of platform competition and ownership properties, there is in-depth study to the B2B platform pricing of different ownership structure, platform competition, the platform choice of third-party institutional investors, network effects and network spread, and so on. This dissertation fills the research gaps about competition and evolution of B2B platform, founds their evolution trends in monopolistic and competitive markets, builds competition system for B2B platform to respond to different market environment, and puts forward to a portfolio about newly constructing and investing B2B platform. At the same time, compared with domestic study of B2B platform, this dissertation has breakthrough in the way of study, but also it creates a new research paradigm for the establishment of China's'B2B e-commerce platform theoretical research'.In this dissertation, the main research contents can be summarized as follows:(1) Clearing research objects and theoretical basis. Based on over 200 B2B platforms investigation, current mainstream B2B platforms are divided into two categories, public platforms and private platforms. And it depicts specific features of two categories, including ownership structure, platforms user scale changes, platform ownership changes etc. which clears study subject. Based on Two-sided market theory, it summarizes B2B platform bilateral market features, including structural non neutral, network externalities and demand complementary etc. which clears its research theoretical basis. In above analysis basis, it forms B2B platform core features of this dissertation.(2) Charging forms and pricing strategies in monopolistic and competitive markets. By building three Hotelling models about registration fee, transaction fee and two-part fee, it analyzes the optimal pricing of B2B platform under these three charging forms, and on this basis, focuses on charging forms selection. Combined platform ownership property and accessing ways, it respectively analyzes pricing strategy of platform in monopolistic market and competitive market. (3) Comparing different ownership structure of platform and its evolution trend. Through taken three different ownership structure platform, neutrality, buyer as well as seller as to be study principal, it analyzes long-term and short-term equilibrium of neutral and exclusive platforms, compares optimal registration fees, bilateral market share, optimal service, platforms profits, consumer surplus and social benefits of different ownership structure platforms, and summarizes the evolution trends.(4) Analyzing multi-platform competition based on three-dimension. Based on three dimensions, accessing mode (single-homing and multi-homing), ownership structure (neutral platform and exclusive platform), competition forms (symmetric competition and asymmetric), it analyzes competitive strategies of B2B platform, and summarizes out the impact of competitive behavior to platform from accessing method and ownership structure.(5) Application of theoretical results to newly build or invest B2B platform. Combined with earlier research results, based on different ownership structures and B2B markets industry characteristics, it makes to further summarize. According to the ownership structure, industry competition intensity, different accessing ways, it forms different investment strategy portfolio of business for newly building platform or third-party investment institution, and puts forward to some guiding suggestions.(6) Expanding study for network effects and dynamic perspective. Based on B2B platform market realities, it mainly analyzes existence of self-network externalities, its internal structure and strength of users, different business modes self-network externalities in B2B platforms. Combined with the theoretical analysis, it judges the reasonableness of bilateral consistency charging, and puts forward to improvement strategies and recommendations. Through Dynamic perspective to further enrich and expand the research means and methods, based on Two-sided market theory, it constructs B2B platform network diffusion model to analyze the platform strategy changes in different perspective.The main innovations of this dissertation include:(1) Platform pricing: Based on different pricing forms (registration fee, transaction fee and two-part fee), it focuses on B2B platform choice tendency to pricing forms, and founds that choice tendency is entirely dependent on a relative variable, called unit service network strength ratio. If this variable is more quantity, tendency to select the registration fee will be stronger. Based on ownership structure and accessing methods, it analyzes pricing strategy in monopolistic and competitive markets, and founds that the change of ownership leads to the monopoly pricing to be tilt to dominant side and platform competition causes to tilt range to be smaller, i.e. price structure flat. Through constructing bilateral proliferation network model of B2B platform, there is an inconsistent conclusion with the traditional view: dynamic pricing of platform is mainly affected by the scale of bilateral total users.(2) Platform evolution: As neutral, buyer and seller platforms to be the main objects of study, it compares the results of short-term and long-term equilibrium analysis to three different ownership structure platforms, and founds bilateral users market size, registration fees, profits, service levels, surplus and total social welfare of exclusive platform in monopolistic have comparative advantage. It draws a conclusion that a neutral platform will reversely evolve to an exclusive platform. Based on Single-homing and Multi-homing, it analyzes platform strategy in competitive market, and draws a conclusion which is inconsistent with monopoly market: in the competitive market, neutral platform can always be relative competitive advantage, and an exclusive platform will positively evolve to a neutral platform.(3) Platform competition: According to three dimensions, accessing mode (single-homing and multi-homing), ownership structure (neutral platform and exclusive platform), competition form (symmetric competition and asymmetric), it analyzes competitive strategy of B2B platform, and summarizes out the impact of competitive behavior to platform from accessing method and ownership structure. Compared with the monopoly market, it is found that platform competition will lead to the owner number of platform expansion, the bilateral market share expansion, price structure flat, accessing method degradation. Through comparison with different accessing modes, it is found that multi-homing will expand platform bilateral market share, will make price structure more complex but not necessarily raise platform charging fees level and not necessarily increase or reduce platform profit level.In addition, this dissertation extends the theoretical results to the application field. Combined pricing, evolution and competitive strategy with Single-homing and Multi-homing of different ownership structure B2B platform in theoretical system, it puts forward to a portfolio of newly building and investing B2B platform under different environmental factors (service level, industry characteristics, willingness to pay, the level of competition).
Keywords/Search Tags:Two-sided market, B2B Platform, Platform Evolution, Platform Competition, Network Effect
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