Game Theory Based Portal Competition

With the rapid development of Internet, the homogeneity phenomenon in the development of portal websites also tends to be more obvious, expanding audience is restricted. At present, Tencent, Sina, Netease, Sohu and other several big portals’ contents are similar, difference and competitiveness also dropped; big and comprehensive portal model caused the convergence of websites’ content. In addition, due to the limitations of e-commerce development, major portal sites in the field of B2C which has a very high profit margin arrested development, resulting in directly affecting the development of the portals. At present, the Internet enterprises should enhance the capacity of independent innovation through the technological innovation, increase technology reserves, find its existing problems, timely adjust strategic goals, and improve the enterprises’ core competitiveness.Based on the theory of competition, social network analysis and the game theory, build up the game model of portals’ competition, to add a new analytical tool and viewing angle for the research of portal sites’ competition. In addition, this paper uses the domestic top ten portals as the research objects, based on the analysis of the present situation of portal competition, carries on the questionnaire survey primarily for student group, enterprise staff group and soho/freelancer group, uses social network analysis to the clustering analysis of investigation results, and finally make the result of the clustering analysis based on cournot model. So we can from a new viewing angle study the current status of portal competition, open the ideas of competitive innovation for the entire portal industry.The article is divided into seven parts, the first chapter is the introduction, which introduces the development present situation of portals in China and the main contents, points out the theoretical and practical significance of portal research, and also emphasizes the research’s innovations and deficiencies. The second chapter is literature review, including the research status of portal sites’ development and competition at home and abroad. The third chapter is an overview of the relevant theoretical knowledge, mainly including the meanings of competition theory, social network analysis, game theory and cournot model. The fourth chapter is empirical research to the portal competition, including data survey of portal competition, clustering analysis for the student group, enterprise staff group, soho/freelancer group, and comprehensive group’s clustering analysis combined the three groups. The fifth chapter is building the cournot game model, to ensure basic assumptions, parameter variables and game players, to determine the equilibrium function, to find out the Nash equilibrium strategy of each game combination. The sixth chapter uses the results of Nash equilibrium strategy combinations, carries on the further analysis to the student group, enterprise staff group, soho/freelancer group and comprehensive group and gives strategy suggestions. The seventh chapter expounds the research conclusion of this paper and gives the outlook based on the conclusion.