The Study Of Internet Financial Enterprise Competition Model

The internet finance industry is developing rapidly with broad prospects and the market is becoming increasingly competitive. What path should internet finance enterprises pursue to maintain competitiveness and continued development? This paper first introduces internet finance connotations, features, current modes, and issues of the industry, followed by an analysis of theoretical studies of competitive models of internet finance enterprises. According to the mainstream theories of internet finance development and the analysis of the internet finance market, this paper provides four competitive models and four corresponding strategies. The first is a competitive model based on economies of scale requiring enterprises to examine scales, context, product limit, and word-of-mouth marketing. The second model is based on competitive advantage requiring enterprises to take initiative in structural reform mergers and acquisitions. The third model is based on economy of scope requiring enterprises to expand from one industry to another. The fourth competitive model is based on positive response effect requiring vertical focusing and ecological reformation. By illustrating the case of Company X, this paper provides a relevant example, as well as suggestions, to both industry players and those looking to disrupt the industryChapter 1:Introduces the background and significance of the study of internet finance, and also introduces the methodology and structure of the paper, as well as a review of relevant literature in the field.Chapter 2:Introduces industry research of internet finance. First, this chapter introduces the concept of internet finance from the perspective of the value chain, as well as summarizing the features of the industry. This chapter introduces the current development of four models of operation and then analyzes the current issues of the industry.Chapter 3:Introduces the competitive model of internet finance. First, this points out why classical theoretical analysis cannot adjust to the modern context and then introduces the mainstream economic theories relating to internet finance enterprises, including recent changes in the marketplace. Lastly, this chapter produces four competitive models based on economies of scale, economy of scope, competitive advantage, and positive response effect, respectively.Chapter 4:This chapter researches the case of Company X. First, this chapter includes a thorough introduction of background historical changes, company resources, and business structure of Company X. This case study examines the comparatively successful strategies employed by Company X in a time of changing trends in the internet finance industry. At last, the chapter examines what remains to be improved upon, and provides suggestions.Chapter 5:The fifth chapter suggests why analyzing this case is relevant for examining the industry as a whole. It provides suggestions on how to establish competitive advantage for both existing market players and potential entrants into the internet finance industry.Chapter 6:A conclusion and summary of the paper, as well as a future outlook of the internet finance industry.