A Game Study On The Strategy Selection Of New Venture Entering Emerging Industry

The upgrading of the industry is the key to a country and region to maintain economic prosperity.China has been actively looking for new economic growth point as new types of problem of traditional industries such as overcapacity emerge.After studying the historical experience of the global economy in experience,Chinese government established the plan of developing the emerging industries gradually.All regions have also introduced a series of policies to actively build a relevant platform to support the development of emerging industries.However,the development of the industry is inseparable from the support of many enterprises.Now in the "Public Entrepreneurship and Innovation" environment,many new ventures aim to develop the emerging industries at the beginning of creation,with a view to seize new opportunities and develop themselves rapidly.In this context,this paper analyzes the strategic interaction between the new ventures,the incumbent firms and the government when the new ventures enter the industry,to explore the strategy selection rule of the new ventures when they enter the new industry,so as to provide meaningful suggestions for the government to formulate relevant policies to develop the emerging industries better and faster.For this purpose,firstly,this paper reviewed the concepts of new venture,emerging industry and industry entry through literature research,and defined the relevant concepts.Secondly,this paper introduced the analysis method of game theory,constructed the dynamic game model between the new ventures,the incumbent firms and the government when the new ventures enter the emerging industry,analyzed the impact of entry barriers,the strategy of incumbent firm and government policies on the entry of the new ventures.Then,this paper analyzed the competitive cooperative relationship between the new ventures and the incumbent firms,constructed the game model between them,and analyzed the evolutionary stabilization strategies of the participants under different external conditions.Finally,based on the above research,this paper puts forward some suggestions on the formulation of government policy in view of the government role in the process of enterprise's entering new industries.The main conclusions of this paper are as follows:(1)The government subsidy incentive policy and the improvement of the income of enterprises to enter the industry will promote the entry of new ventures into the emerging industries,the crackdown of theincumbent firms and industry barriers will hinder the new ventures to enter the emerging industries;(2)The new venture is limited to their own disadvantage,they just can access a limited number of resources,in entering the emerging industry,they can form a strategic alliance with the incumbent firm to cross the barriers to improve their own survival rate;(3)The new ventures should actively improve their own innovation capacity,and laid the foundation for the formation of an alliance with the incumbent firms;(4)Reducing the cost of cooperation between the new ventures and the incumbent firms,improving the competitive cost of the incumbent firm can help to promote the cooperation between the new ventures and the incumbent firms.