Research On The Bilateral Network Effect Of E-commerce Platform Based On System Dynamics Simulation

In the development of business ecosystem,"network effect" is one of the most valuable characteristics of e-commerce platform.That is,as the number of users of a product or other complementary products increases,the value that users get from such products will increase,and users will benefit from user scale.Network effect can achieve scale effect,leading to "winner-takes-all",which has a great correlation with the users scale in the network.Therefore,it is of great practical significance for e-commerce platform managers to stimulate and enhance network effect,expand network scale and maintain market advantage and competitiveness.Therefore,from the perspective of customer perceived value,this paper established the system dynamics model of network effect mechanism of e-commerce platform,simulated and explored the mechanism of network effect with Vensim,and helped e-commerce platform formulate strategies to stimulate and enhance network effect,so as to promote the long-term prosperity and development of e-commerce platform.Firstly,this paper defines the classification of bilateral network effect,membership relationship,the composition of customer perceived value and the driving factors of customer perceived value.From the perspective of customer perceived value,the mechanism model of bilateral network effect was established and Vensim was used to analyze the mechanism of bilateral network effect.By analyzing the influence of product price,product quality,product service and product brand power of complementary enterprises on customer perceived value,observing the change trend of bilateral user scale and discussing the black box mechanism of network effect,this lays the model foundation for the following research on bilateral network effect of e-commerce platform.Secondly,from the three aspects of resource base,revenue source and business composition,this paper analyzes the difference between enterprise strategy and platform strategy.Then,from the perspective of value proposition,value creation and value acquisition,this paper describes the changes of membership and member behavior of e-commerce enterprises after they adopt platform strategy and introduce third-party merchants.Accordingly,the causal loop diagram and stock flow diagram were constructed,and the system dynamics model of the bilateral network effect of e-commerce platform was established,and the simulation experiment and effectiveness analysis were conducted through Vensim.Finally,this paper takes J e-commerce platform as an example,establishing a network effect mechanism model of J e-commerce platform from the perspective of customer perceived value,and simulating four kinds of policies for this model.According to the simulation results,the following Suggestions are proposed for J e-commerce platform to stimulate and enhance the network effect :(1)improving the basic service system and increasing the transfer cost of bilateral users;(2)reducing the shopping cost of consumers and improving the perceived value of customers;(3)carrying out customized products to improve customer loyalty;(4)designing standards for merchants to enter and innovating marketing methods.The conclusion of this paper is helpful for e-commerce platform to maintain market competitive advantage,stimulate and enhance network effect,and achieve a win-win situation with merchants.