Research On Differentiated Competition Strategy And Competition Effect Of Network Platform

Since twenty-first Century,the rapid development of the network,and then spawned a large number of network platform enterprises,known as the representative platform of BATJ(Baidu,Alibaba,Tencent,Jingdong)and so on.The progress of Internet technology also subvert the industry competition pattern,the traditional financial sector will therefore have turned upside down,mainly for the rise of the Internet financial,convenient online payment platform to the user and data as the core of the forced traditional banking entity outlets closed.These network payment platform is a typical bilateral market platform,which is different from the traditional unilateral market.There are two main participants in the traditional unilateral market,that is,the supply side of the product and the demand side of the product.The key difference between the bilateral market and the traditional unilateral market is involved in the main third party platform,on both sides of the platform are respectively connected with the product supply side and demand side,the supply and demand sides attract each other in the cross network externality under the effect of the final deal on the platform.With the Internet financial platform as the representative of the network platform to win customers in different market structures,ensure the market share? And how to use other means of competition(such as service differentiation and product differentiation)to avoid intense price competition and achieved good market performance?Obviously,these are the important issues to study.However,the current theoretical research on the Internet financial platform for the network platform in academic circles is not comprehensive enough,most of the existing literatures focus on network platform for bilateral market characteristics and price competition,the difference is not fully on the network platform.However,in the network platform with obvious characteristics of two-sided markets,the appropriate differentiated competition strategy is extremely important,because the implementation of differentiated competitive strategy can increase the stickiness of users on the platform.This is a two-sided market characteristic based on the network platform,through the establishment of mathematical model of differential competition strategy analysis of competitive strategy and the competition effect of network platform in different market structure in the competitive benchmark and the difference of the problem.This paper is divided into 6 chapters,and the logical structure of the article is as follows:The introduction of the first chapter introduces the background and significance of the research(including theoretical and practical significance),research content and methods,as well as possible innovation.The second chapter first concept of bilateral market,bilateral market characteristics and pricing mechanism were reviewed,then reviewed the relevant literature on pricing and difference network platform competition.Study on the platform of network competition problems: the existing literature to the existing literature on network platform pricing structure is analyzed,and no study on the platform of the differences of the competitive strategy.The third chapter briefly analyzes the theoretical basis of network platform competition,including the market characteristics of the network platform and the competition mode of the network platform.The fourth chapter is the core part,and introduces the competition model(Hotelling linear city model and platform competition game model),and discusses the competition strategy of network platform under horizontal differentiation and vertical differentiation.The results of the model show that the oligopoly network platform has a strong externality to the cross network users and a large demand elasticity;Service differentiation of network platform can increase user stickiness and avoid competition for customers by price competition;Two network platforms with different market forces need to consider the users' needs and preferences,and then formulate differentiated competition strategies.In short,due to the existence of network externalities in the two-sided markets,the differentiated competitive strategy of the network platform(based on the horizontal differentiation of services and vertical differentiation based on products)can increase the competitiveness of the platform itself.The fifth chapter is an empirical study.For the above conclusions of the model,this chapter takes the network of Internet financial platform representative as the case study,the difference in the verification of horizontal differentiation and vertical differentiation of the two dimensions of the platform under the influence the choice of competitive strategy.The sixth chapter is the strategic recommendations.This paper gives four suggestions on the differentiation competition of network platform:The network platform makes full consideration of user attribution,demand elasticity and cross network externality,and then develops differentiated competitive strategies;When the technology innovation is insufficient,the network platform can gain more market share by horizontal differentiation competitive strategy(providing differentiated services,facing different customer groups,etc.),thereby increasing the profit level;Oligopoly network platform uses differential price subsidy strategy,the first to provide high-quality products,low quality product strategy is better;In the competitive network platform,the backward entry platform should provide more cost-effective products,and overcome the "quality trap".