Study On Profit Model Of Mobile Application Store Based On Bilateral Market Theory

The emergence of the mobile applications store thoroughly overturned the era led by hardware which is a great opportunity of mobile Internet market, and it also makes the application software become criterion measuring whether a mobile phone is successful or not. The great success of Apple APP Store drew imitation from countless terminal manufacturers, Internet enterprises and telecommunications operators. The industry becomes very popular and compelling, but the success of Apple can’t be copied easily. The closed platforms represented by Apple are under challenge from open platforms represented by Andriod, when they compete for the mobile user, they are also making comparison and competition on profit model, the industry chain development and other aspects.Because of the emerging sex of the mobile applications store, studies on mobile application store are still less at present. In theory, the mobile application store is a very typical bilateral market, mobile application store pricing model, profit model and the behavior of every subject on the industry chain can follow bilateral market theory of the game theory.But there exists lack of theoretical research in the current research field, and the existing literatures using bilateral market theory to study main body behavior seldom consider individual differences of users. This paper has considered the user’s individual advertising preference difference in study on profit model, and expanded the theoretical research in this field. In practice, the present development situation of the mobile application store reveals a common problem, the income from former is less, and can’t support all the developers to get corresponding income or ideal income. While the mobile advertising market is not mature, and the feasibility of the profit model earned from back-end remains to be proved. So what kind of charging system can earn better, and can be suitable for the current domestic telecommunications market, is the question to focus on and to answer in this paper. The main research contents of this paper contain the following several aspects:1. Compare the mobile applications store’s profitability differences between the front profit model and the back profit model using bilateral market theory, on a closed platform and on an open platform, and give Flat Taiwanese behavior decision such as optimal pricing, yield at the premise of profit maximization. Provide the reference suggestion for enterprises in the mobile applications store industry on how to choose profit model better so as to earn better.2. Focus on the back charing profit model of the mobile application store, add the individual preference difference of advertising as a major variables, and analysis the optimal strategy choice of enterprises in the mobile application store industry under the influence of this variables. Expand the theoretical the strategy reference of the back charing system of the mobile application store.3. In the part of the competition strategy analysis on the open platform, provide reference about mobile application store’s strategy choice and practice through model analysis on three typical strategies including the vertical integration, the interchange and the interest distribution.4. Analyze the strategy and change of mobile application store’s back charing system in advertisers’different access way, and the influence of advertising inputs, and user preference for advertising on platform profits.This paper has the following innovations:1. The innovation of research object. Make mobile application store as the research object, compare and analysis the influences of different market environment, charging system, platform strategy and advertisers access to the way on its the profit model. Fill theory research vacancy in this field.2. The innovation of research method. Add the individual preference difference of advertising variables in profit model analysis based on the study method of bilateral market theory to the influence of users having different preferences on the platform choice.In general, through theoretical review, model construction, and case analysis, the main conclusion includes the comparison and analysis on some typical types of charging system, on different platforms operating strategy, on charing system in advertisers’different access way and other aspects, which has the theory and practice meaning for mobile applications store to select different profit model and strategy.