Research On Free Business Model Under Internet Economy

Now China Economy is facing difficult transition,and great changes happen on the way of resource input and business operation at the same time information technology takes us into the Area of Internet.The Internet Economy lets us experiencing deep social changes,such as continuous breakdown of traditional economy rules and enterprises' boundary.The requirement of socialized production is strengthened and the enterprises' focus is shifted from solely on business resources to both business resources and social resources.The competition between enterprises transfers from occupying resources to integrating resources and business model innovation becomes the new focus of competition.Based on the changes of foundation environment of society-economy,this paper through the research of Free Business Model adaptive environment,strategy selection and basic economic theory also with the empirical test with Free Business Model Key Success Factors discusses the path and trend of Free Business Model development,and clears the sustainability of Free Business Model development.With the methods used in this paper of Quality Analysis method,Document Analysis method,Game Model Analysis method,Questionnaire Investigation method and Empirical Test method prove the Free Business Model with overall and objective view.Firstly,by the way of Quality Analysis method,this paper from the point of view of business ecosystem constructs the social-economic analysis framework Free Business Model to discover that Free Business Model is not only a kind of business model but also a kind of social-economic development mode and consumption mode.The above changes of society and economy environment are the foundation of Free Business Model development.Secondly,through the analysis condition settled by hawk and pigeon game model,the paper analyzes free fee strategy when enterprise goes into a new market or crosses the boundary from a matured market to a new market and conclude that when enterprise's marginal cost is zero free fee strategy is evolutionarily stable strategy,at the same time is a Nash Equilibrium.This paper also analyzes the performance between the existing enterprise and the potential competitor through limit pricing model.The price of limit pricing is strictly lower than reservation price of the monopoly market.The existing uses the extremely low price to deliver the signal that its' cost is low enough to let the potential competitor regret to come in,so as to disturb the judgment of potential.Thirdly,the paper through constructing two-sided market pricing model to analyze free fee pricing model also with the analysis of welfare of two-sided market makes sure that two-sided market is supported by network externality.The welfare contribution from network externality is large than single market pricing contribution to the society welfare,so as to prove that under two-sided market the low price under marginal cost can still be best pricing choice.The loss from zero price side can be remedy by other pricing strategy or cross-subsidiary.At last base on the analysis of our country's Free Business Model ecosystem,the paper sets Structural Equation Modeling and designs Free Business Model key success factors research scale,through 332effecitve copies of data statistics to test validity of Free Business Model key success factors.The test chooses Cronbach'a as basic index to inspect reliability,and introducing CR to evaluate inner consistency of variables which belong to relative same group so as to improve the data's reliability.After testing KMO data and Bartlett ball test companying probability,Exploration Factor Analysis method is used to get "7-factors Model" of Free Business Model key success factors.At last Inspecting Factor Analysis method is used by choosing x2/df,RMSEA,CFI,NFI,IFI fitting index and through software AMOS 17.0 to test the whole fitting of 7-factors.Finally customer-centric,low-cost position,separation between ownership and use,cross-subsidiary,change of trend and strategy of pricing,large enough market capacity and trans-boundary operation are 7 key success factors to the success of Free Business Model.