Study Of Network Constructing, Profit Model And Competitive Advantage For Two-Sided Markets

In recent years, with the development of network technology, improvement of service and refinement of social division of labor, a kind of markets appear in economic activity increasingly. Trades of the markets are based on a platform which provides products or service to both buyers and sellers through certain price strategy, facilitates the trades and gets profits. The markets are called "two-sided markets". Two-sided markets exist widely in real life, such like matrimonial agencies, periodical offices, operating systems, payment systems even internet. Along with the development of social economy and science and technology, two-sided market enterprises have great developing potential to meet a variety of life needs of people.At present, the domestic and foreign scholars have been working in some studies of two-sided markets, and mainly concentrated in the industry's pricing strategy, profit model etc. But there are very few scholars who stress the whole of two-sided market and study the network constructing, profit model, competitive advantages of two-sided markets. Therefore this paper studies the network constructing of two-sided market firstly, then analyzes the profit model of two-sided market, and discusses the competitive advantage and competition strategy finally.This paper gives a briefly summary of related theory of two-sided market, profit model and competitive advantage firstly. Next, this paper uses Tencent as a case, introduces its network constructing progress, and gives the conditions and methods of network constructing combined with studying on other industries. Then this paper takes the bankcard industry as instance, studies the two-sided market characteristic, operation mechanism and profit model of the industry, summarizes the main profit source of two-sided market enterprises and three notable features of profit model of two-sided market combined with studying on other industries. As a result, this paper gives some advices and suggestions about the two-sided markets promoting economic development of China from national level and enterprise level finally.