A Study On Competitive Strategy Of China Online Game Industry Based On Information Rules

The rapid development of China online game industry has become one of the few spotlights in network economy. The competition in online game tends to be fury after year's growth. Thus the reasonable competitive strategy will be imminence for many online game firms who attempt to be successful in this domain.This paper reviews the nature of the network economy, i.e. information rules, and explores the general competitive strategy of internet enterprises in network economy times, integrated with the competitive strategy theory of Michael. E. Porter. The paper proposes the information rules, which include high sunk cost and low marginal cost, network externality, complement hypothesis, switching cost and lock-in effects, prosuming buyers and buyer's anticipation hypothesis, possesses the dominant status in network economy and profoundly affects competitive strategies. According to the faithful data, the paper concludes the definition, classification, history, compares the business models of online game, and analyzes the exterior circumstance, competition status, trend, strength, weakens, threaten, and opportunity. Finally, the author puts forward the options of the competitive strategies of the entrants and participators in China online game industry.The paper provides reference for operation firms, entrants and related persons in China online game industry.