Operation Strategy Research Of Search Engine In Two-sided Market

With the rapid development of Internet technology, search engine rapidly grows into the most valuable fields of Internet.This paper addresses the following aspects of the search engine system's operation. We first introduce the history and current situation of search engine in China. Then, we discuss the cross network externalities, demand for complementary and the prices of non-symmetry features of search engine. There exist various profit models and the advertising model's charging methods include:Membership fees system, click on the fee system and two charges system etc. We discuss the optimal pricing structure of search engines, pricing strategy and competitive strategy in emerging search engines from the monopoly platform and multi-platform competition in two dimensions.The main conclusions are as follows:Search engines have typical two-sided markets characteristics; Search engine enterprise may adopt the many kinds of profit strategy, but advertising model is the core of the commercial mode; The three fees that search engine charges all have optimal price structure; Search engine pricing related not only to the cross-platform network externalities, but also to the user's demand elasticity and the willingness to pay.In response to the opportunities and competitive situation, search engine enterprise can adopt strategies including:Search engine must really be good at breakdown the needs of user and do product innovation work to attract search users; By the expansion of the coverage of the database to improve search regional; Through the establishment of specialized search sites to improve the inspection accuracy; Integrating the Web resources website and the non-Web resources website to improve search engine inspection rates:and finally achieve the profit maximization.