Research On The Dynamic Evolution Of Internet Platform Competition

With the rapid development of Internet technology,the unique development path and speed of the platform model have made the traditional enterprise manager terrified.The success of Internet platform can get a lot of benefits.Meanwhile,many Internet platforms are fading away in the fierce competition.It makes the related issues of the Internet platforms' competition become the focus of business managers,and have also become the research focus of scholars.In this paper,we choose the competition between the Internet platforms as the research object,and explore the influence mechanism of the two-sided users connect to the Internet platform and the dynamic evolution rule of the Internet platform in the process of growth.To some extent,this study enriches the research contents of two-sided platform competition dynamics,and provides theoretical basis for Internet platform enterprises to develop reasonable business management strategies.Through literature review,we find that most of the existing researches on the dynamics of platform competition assume that the platforms are in a state of equilibrium,and there is little analysis and simulation of the problem of “chicken first or egg first”.Therefore,based on a review of existing literature and two-sided platform theory,we starting from the classical Hotelling model.With five major factors,namely platform of subsidies,technology innovation,network effect,difference and ownership of two-sided users,the network effect and the two-sided users' utility model is optimized.And we construct a dynamic evolution model of duopoly competition between platforms.Then,According to these models and system dynamics method,a two-sided users' flow system is developed by simulation software Vensim.Under different market structure,platform subsidy and technological innovation are taken as experimental variables respectively,we carried out the simulation experiments of duopoly platform competition and recorded the experimental data and results.The experiments show that the results of duopoly platform competition may be "winner-take-all" or "possible coexistence".In addition,we compare the process of simulation and the data of experiments in each group so as to reveal the dynamic evolution rule about the competition of the Internet platform.And at the same time,we summed up some management strategy for Internet platform enterprise,such as arousing the network effect,subdividing market,enhancing user sense of belonging and low access,observing the structure of market and setting the "pay side" and "subsidized side" and a suitable combination of subsidies and technological innovation.Finally,the online taxi platform is selected for empirical analysis.We take the competition between two platforms of "Didi" and "Kuaidi" as an example to carry out research and simulation.The simulation data is used as the comparison sequence and the collection of real data of "Didi" as the reference sequence.With the help of software MATLAB,grey correlation analysis is used to get the grey correlation degree between the comparison sequence and the reference sequence,and it's 0.95.It is proved that the similarity between the simulation data and the real data is high and the model of the Internet platform competition is effective.On the basis of previous studies,we have added platform subsidy and technological innovation as experimental variables to build a more realistic network effect and two-sided users' utility model and duopoly platform competition dynamic evolution model.It solves the problem of "chicken first or egg first" in the platform competition,making the dynamic evolution of Internet platform start from the time of entering the market,so they can experience the complete life cycle.In addition,the system dynamics method is used to simulate the dynamic evolution process of platform competition,which provides a new research method in this area.