Study On The Market Structure Of China Online Shopping Platform Based On SCP Paradigm

Since1990s, the market of online shopping has made a great progress. It hasdeveloped from B2B to B2C and C2C, meanwhile, it has penetrated people’s life frombusiness transaction. And in general, the market of online shopping platform in chinahave a great development in market scope and share. And as a closer pattern ofconsumption to man’s life, shopping on line is much more popular than before. Butwith the rapid development, there are also lots of problems in this market, mostnotably with high market concentration, the expanded scale of the web-site andincreased transaction amount but without high profit. This phenomenon and problemhas restricted the further development of China’s online shopping platform market. Soin this thesis, we seek a progressive solution to the problems in market structure byanalysising it. And these will have a practical significance for the development of thismarket.Based on the SCP paradigm form theory of industry organization, I attempt toresearch the online shopping in market structure, market behavior and marketperformance. Specifically, I study the status of the market structure by analysisingrelated data. And I research the competitive behaviors between the online shoppingenterprise after study the operator’s behavioral strategies. According to the profitmodel of B2B and C2C platform, I investigate the market performence condition ofonline shopping. Based on above mentioned research, I analysised the problems ofonline shopping in china and proposed corresponding solutions.By analysising relateddata, I can concluded that the online shopping platform are highly concentrated, smalldifference and with large entry and exit barriers. Despite the free pricing strategy ofC2C and low-cost pricing strategy of B2C, the online shopping platform operators areso depended on price competition, that cause insufficient competitive basis. And thescale of online shopping market is expanded but the status of the profit margin is verylow. At present, the online shopping in CHINA are not only serious homogenization,lack of high profit model, frequent acts of vicious price competition but also lack ofperfect system on law or credit. Therefore, in order to solve the above mentionedproblem, we should make effort to limit the vicious price competition, enhancedifferentiated products and services, increase and improve the profit model and so on.