The Research Of The Free Economics Method Applied In Enterprise Operation

Recently years, with the help of "free" wave from the Internet, more and more enterprise join the ranks of the "free". Free economic model as a new business model, brought a huge impact to traditional business model. Free economics theory that proposed formally by Chris Anderson in2008came into our scopes, laid a theoretical foundation for the enterprise operation activities under the new market environment.Free economics theory based on the basis of the Internet applications, the Internet add to Moore’s law, not only the difficulty of the technical is inversely proportional to the cost, but also may add the marginal cost that can be ignored. Because digital products and traditional products are different, the cost structure of digital products is special. The first copy of digital product generally requires a lot of cost to technology development or equipment purchasing. If the product is successfully creating, with the help of the Internet, the dissemination and replication of this product can reduce cost greatly, furthermore with the increase of consumers of digital products, it is entirely possible that the product’s marginal cost will close to zero. Digital products compared with traditional products, the cost of transport and storage are negligible. After the development, the products can product unlimited only need simply replication, in this sense Free economy has its rationality.Chris Anderson summarizes the free operation models into four forms:one is the "direct cross-subsidization", which is consumers pay for a product and get another free product, the so-called "buy one get one free"; two is the "tripartite market", which is buyer makes a payment to seller but paid by third party, most of the media take this model of operation; three is the "freemium", which is free to primary consumers or short-term consumers, and charge for senior consumer or sustained consumer, this is common in the Internet games and various Internet application platforms: four is the "non-monetary market", which is enterprise provide free products to consumers, but consumers need to pay attention to the enterprise or give their praise, this is common in information or music website on the Internet. These four free economy forms seemingly did not bring any profits, but they constitute the main body of the operation ideas of Free economics.But thought is summarized through practice and inducted systematically, before the Chris Anderson proposed the Free economics theory that does not means there are no free economic thought in enterprise operation. And Free economics is the product of the times, perfects with the development of the times and technology, the enterprise operation thought also changes with the development of the times. In theory Free economics might not exist, this requires enterprise core operation thought is to transfer the cost. There are two common models to achieve the free to users, one is advertising, and another one is free+premium (freemium) model,"freemium" is a new hybrid English word derived from the combination of "free" and "premium".Free economy is also considered as an economic form like service, because selling products is not or is no longer the only way to profit and with the help of the Internet "service" to provide complete services to consumers, the profit source of enterprise operation can occur on any node throughout the Internet, as long as enterprises judge the using behavior of consumers accuracy, they have the opportunity to create equal value, even beyond the owe value that sold by transitional economic models.From the innovation point of view to the free economy, it is both a creative economy and a kind of disruptive innovation. It upset the rules of pricing and profitability of traditional economic theory, make the boundaries between products and services are no longer clear. But in essence free economy also is a kind of profit way, free economy in essence is the reflection of the change in the direction of global economic system, enterprise operation activities develop towards complex day by day. Enterprise face such changes, should focus on analysis of customer base and consumer behavior, so according to the demand of consumer to develop new high value-added products.No matter what kind of forms of operation, is under the guidance of the operation ideas of Free economics, in the name of free to achieve the purpose of profit. Because marginal cost from every increased consumer that enterprise burdened is almost negligible, and enterprise provide quality service could attract more consumers, thus in the huge consumer group to develop paying group, or gain more advertising revenue.With the rapid development of the Internet shopping in China, the product information on the Internet is dazzling, a real important product information often submerged by the massive product information brought by the Internet. The consumers on the Internet have felt numb to the more and more product information; lack of concentration, common information are difficult for attracting consumers, even if the consumers focus on a product temporary, they also are difficult to maintain a long-term concern. Enterprise must reform every aspect of product, advertising, channel, brand and packaging integrally, only by the various methods of marketing to move consumers so enterprise can attract the concentration of the consumers mostly. In the various methods of marketing, without doubt the "giving freely and trying out" is one of the most effective. Giving freely, eliminate the consumers’hesitate to buy, thus can deliver a product to consumers almost without obstacle. The trying out is the most effective way to let consumers fell the product function and quality directly. As to the quality and practical enterprise product, it can attract the consumers’concentration speedily and lastingly by the free marketing.Nowadays electronic commerce is an emerging industry in China, for its development need the policies help, many areas give policies support for the e-commerce enterprise settling. Some areas based on the demand of local economic development, attract business widely by establishing demonstration base, import various industrial projects positively surrounding the e-commerce, and gradually perfect the construction of the e-commerce industry chain, which for domestic enterprise to practice free marketing is an undoubtedly good policy.This paper according the Free economics theory proposed by Chris Anderson, combine the actual enterprise operation situation in China, hope to find a set of creative operation ideas for enterprise through the search and analysis of Free economics theory. Let domestic enterprise use the Free economics theory to change operation thought, guidance enterprise operation mode, increase competition ability under the new economic situation. Meanwhile I hope this study can bring some enlightening for the development and perfecting of China’s economic theory system.