Strategic Analysis Of Online Retailing Under The Quantity Competition With Network Extrnality

In recent years,the development of the online retail ecosystem is unprecedented,and many online retail platforms are facing more intense competition and more diverse challenges.It is particularly important for platform companies to think further on the premise of combining their own positioning and development.This article combines relevant literature,analyzes and abstracts several existing operating models of the platform,considers the competition and cooperation relationship between the two suppliers and the platform,and discusses how the platform operates in a pure self-employed mode when competitors choose quantity competition.The hybrid business model and the pure platform model choose the optimal business model and the difference between it and the competition subject when choosing the price competition.At the same time,it has the differentiated product and the external factors in the network.What happens to the platform's mode selection?The main work and research conclusions of this article are as follows:From the perspective of quantity competition,the analysis is based on the changes in the relationship and structure between the platform and the suppliers,and then through comparison with the conclusions related to the platform selection obtained from the existing price competition,it is found that the platform mode selection under the quantity competition in the middle,when the degree of market competition is greater,the platform tends to choose a mixed operation mode,and when the degree of market competition is less,the platform will choose a pure platform operation mode,while the pure self-employed mode is always a bad strategy for the platform;When companies choose to adjust output to compete,it will cause the platform to formulate higher commission requirements.In the case of quantity competition,regardless of the model,the equilibrium output does not exceed the equilibrium output in price competition,while the equilibrium price is the opposite.The equilibrium price will not exceed the equilibrium output in quantity competition.Then this paper considers the impact of the combination of network externalities and product differentiation on the final mode selection of the platform,and analysis shows that network externalities play a positive role in the profit of the entire supply chain,especially when the platform setting is high.When the proportion is cut,the profits of both the supplier and the platform will increase with the increase of network externalities.The proportion set by the platform is also positively related to the network externalities existing in the market.When the network externalities are small and the market competition is weak,the platform's optimal mode is pure platform operation;when the network externalities are large and the market competition is strong,the platform's optimal mode is the hybrid mode.It is worth mentioning that when the degree of competition between products is not intense,the platform chooses the pure platform operation method to obtain the maximum profit.