Industrial Organization Analysis Of Electronic Commerce Network Shopping Platform In China

Along with the development of Internet technology, the network has been involved in all aspects of people’s lives, the electronic commerce as a marketing mode was born, and developing rapidly. China’s e-commerce also develop from B2B field to the B2C and C2C field, because of it have many advantages like no time and space limitation, low entity trade costs and price, diverse range of goods, it gradually permeates from enterprise trading to the ordinary consumer retail daily consumption, the market scope continually expanding, market share constantly increasing, and it is developing and expensing more close to ordinary people’s life.After more than ten years of development, China’s online shopping industry has a lot of breakthroughs and achievement, in1999the first a e-commerce platform was born, the trading size grew from550million Yuan in2001to766.58billion Yuan, the user scale also gradually increase to363million, per capita expenditure increase from147Yuan in2001to4099Yuan in2011. But this industry has also exposed a lot of problems, one of the most notable problem is that each big website facing the embarrassing situation of scale and trading volume increased without any profit. After more than ten years of development, China’s e-commerce industry has entered the mature stage, but the state of no lasting profit seriously hindered the development of this industry.This paper attempts to research the e-commerce platform industry from the aspects of market structure, market behavior and market performance——based on the industrial organization theory of the SCP paradigm. By the means of combining the theoretical research and empirical research method, based on summarizing the industrial organization theory and bilateral market characteristics and introducing e-commerce industry, firstly analyzed the current situation of industrial structure, it is concluded that the market concentration of e-commerce platform industry is high, the difference is small, barriers to entry is high; Secondly, from operators strategy, analyzes the competition behavior of network platform, think that e-commerce platform operators dependent too much on price competition, differentiated competition inadequate; Thirdly, briefly introduced the industry performance status: the scale expand continually but difficult to achieve profit. According to the above analysis, summarizing the problems in the structure, conduct and performance of this industry and the main reason of the embarrassing situation between scale and profit. Then putting forward several corresponding countermeasures to solve the existing problems, such as we should limit excessive price competition provide differentiated products and services, increase the profit mode and enter international market, hope that these would help to solve the existing development issue of unbalanced development in its scale and profit.