Research On B2C E-commerce Platform Competition Strategy Based On The Network Externality

Chinese B2 C e-commerce started from the late 1990 s,and after more than 10 years' development,online shopping has become an important part of the national economy and consumers' daily life.With the development of e-commerce,B2 C e-commerce platform continues to emerge.Tmall.com,JD.com,Suning.com,Gome.com,Dangdang.com,Amazon China,Vip.com and other e-commerce platform lead a wave of online shopping.After the Double 11 Shopping Festival in 2015,the double oligopoly trend initially appeared.It almost becomes the competition between two enterprises of Alibaba.com & Suning.com and JD.com & Tencent.com.After JD.com acquiring yhd.com,e-commerce oligopoly trend became more obvious,forming the “Two Super Multi Strong” competition situation.B2C e-commerce platform provides transaction services for businesses and consumers,between which there is cross network externalities.Compared with the traditional network,the establishment and implementation strategy of B2 C e-commerce platform affect the choice of platform,registration and transaction of businesses and consumers,and this effect will directly decide the transaction value of the platform.In the process of online shopping transaction,consumers are trading sponsors,the ultimate source of profits and also the key contention of B2 C e-commerce platform.In the era with diverse choice and intense competition,the transfer cost of consumers between platforms becomes more and more low.Therefore,how to construct a proper competition strategy and to achieve sustainable competitive advantage,for expanding the market size of the platform and enhancing the core competitiveness and influence,have become a challenging issue of the B2 C e-commerce platform.From the perspective of consumer selection based on the product differentiation,the paper using system dynamics,subdividing network externality,and considering the generation mechanism and action mode of direct network externality and indirect network externality respectively,and the relationship between network externality and compatibility,and the influence to the platform competition of these factors and relationship,revealed the development trend and change rule of B2 C e-commerce platform.Then validated the simulation model through model test.After that,it simulated the competitive strategy and analyzed the effect of the strategy by means of parameter adjustment.Especially for the simulation that the competitors respectively adopted different strategies to establish a competitive advantage and strategy choice in response to competitor,which could describe the real competition situation between the competitors,and provide a theoretical basis for the competition decision of B2 C ecommerce platform.Research on B2 C e-commerce platform differentiation competition confirmed to the industry research on actual demand for platform competition,and provides reference for similar research.In addition,the consideration of the effect and mutual relationship of network externality and compatibility,and at the same time,the application of system dynamics simulation tools to solve the complex problem of platform competition,provided a good idea for further similar research.