Research On Network Externalities And Their Business Strategy

While studying the new rules and business strategies in the network economy, more and more clues imply that the difference strategies between now and past is mainly caused by the fact that the BIT, basis of the network economy and the Atom, the element of the traditional society have completely deferent and significant features and attributes. Those differences lead the present world running in a different way. Among all these features, the most important character is network externality.This paper begins with the definition and classification of the digital goods, network externality is being studied in detai1 through the research method of comparatively dynamic and Game Theory to find out the real source of network externality. The positive feedback effect, the negative network externality effect and the influence caused hy it. are also analyzed.On the basis of micro-economy, the paper continues to discuss the vital six strategies to the enterprise in the new economy, include going first, penetration price, anticipating management and alliance. We also studied in-depth business tactics, such as price dissimilation, lock-in, opening, customization, bundling, etc and point out the applying background, significance, methods and attentions. Such work tries to provide a clear, effect: and efficient advice to the enterprises in the now economy, in order to help them make proper business strategies and win the competition in the new circumstances.In the last chapter, it discusses how to choose an appropriate scale for an enterprise in the network economy.The author tries to reveal the real rules and laws which can be reflect the completely new network economy and help human beings to penetrate the changing new world.