Product Differentiation Strategy Of Two-sided Platform Enterprises

Two-sided platform enterprise has received great attention in academic circles,but the product differentiation competitive strategy research of two-sided platform is relatively rare.The core problems of product differentiation of two-sided platform enterprise include: why should differentiation,how to differentiate,how about differentiation,and what is the mechanism of product differentiation strategy success,so this paper is based on the case of a typical two-sided platform enterprise,Nintendo Co.,Ltd.,to explore the motivation of such enterprises to implement product differentiation strategy,behavior,results,and the mechanism behind it.Finally focused on solving the core problem of " two-sided platform enterprises how to successfully implement the product differentiation strategy".Through literature review and theoretical analysis,this paper initially establishes an analytical framework: “Access to monopolies”?“Constructing core Competence”?“Market pressure” ? “Profit driven” and “Demand driven” are the driving factors of product differentiation of two-sided platform enterprise,these five motivation variables affect the adjustment of enterprise competitive strategy behavior,and encourage platform enterprises to start implementing product differentiation strategy;Dynamic ability affects the concrete strategy of two-sided platform enterprise differentiation strategy and helps the enterprise to implement the strategy effectively,so that the enterprise that carries on the product differentiation can get rid of the entanglement of the competitor imitation learning and the homogenization competition,and obtain the desired competitive advantage;The resource base also plays a positive role in the enterprise product differentiation strategy and promotes the play of dynamic capability,and supports the strategic adjustment of two-sided platform enterprise under the influence of five driving factors.According to the theoretical analysis framework,the paper makes a case study of Nintendo's product differentiation strategy in depth.Research has found:(1)“Two-Sided Profit”,“Access to platform monopolies”,“Constructing core Competence”,“Market pressure”,“Two-Sided Demand” are the driving factors for implementing product differentiation strategy for Two-Sided Platform Company;(2)The two-sided platform enterprise Nintendo has implemented the product differentiation strategy of "vertical iteration" and "horizontal integration" with two-sided market characteristics,the result of which is in line with the expected goal of the enterprise.(3)The experience of Nintendo's product differentiation strategy succeed is: according to five kinds driving factors,analysis of internal and external environment,find and seize the opportunity;based on the support of dynamic ability,through effective organizational learning,resource integration and coordinated refactoring,based on the user experience of two-sided platform developing differentiated products;rely on resource base and resource support,through the differentiation strategy of “vertical iteration” and “Horizontal integration”,with partners and customers in the two-sided market to carry out demand feedback and collaborative innovation,focus on the ultimate and product innovation,to achieve disruptive product differentiation and building a successful platform-level products.