B2C E-Commerce Platform Competition Strategy Research Based on the Network Externality

Dongping TANG, Jingchun LEI

Abstract


In recent years, the competition between B2C e-commerce platforms is increasing. From the perspective of consumer choice, with the application of system dynamics theory, and the analysis of the Causal relationship between the direct network externalities, indirect network externalities, compatibility and so on, the paper established system flow chart and system dynamics model of B2C e-commerce platform competition. Then using Vensim PLE to simulate the model and verified the effectiveness and application value of the model. The results showed that cost strategy that reduced cost of consumers’ online shopping and passed on part of the costs to the sellers, the marketing strategy that improved the marketing costs and perfected the products and services and the compatibility strategy that improved the compatibility with market leadership platform can effectively increase the market share of B2C e-commerce platform.


Keywords


Direct network externalities; E-commerce platform; Competition strategy; System dynamics

Full Text:

PDF

References


Armstrong, M., & Wright, J. (2004). Two-sided markets with multihoming and exclusive dealing. Mimeo, IDEI, Universite de Toulouse.

Cheng, G. S., & Qiao, W. R. (2014). Research on the relationship between card scale and bank card fee. Industrial Economic Review, 13(4), 61-74.

Diao, X. J., Yang, D. L., & Hu, R. B. (2008). Extended Hotelling model with Stackelberg game and network externality. Systems Engineering, (2), 22-26.

Genakos, C., & Valletti, T. (2012). Regulating prices in two-sided markets: The waterbed experience in mobile telephony. Telecommunications Policy, (35), 350-358.

Hajji, A., Pellerin, R., & Leger, P. M., et al. (2012). Dynamic pricing models for ERP systems under network externality. International Journal of Production Economics, 135(2), 708-715.

Jiang, L. S. (2010). Research on manufacturers compatibility based on network externality. Science Technology and Engineering, 10(33), 8196-8201.

Katz, M. L., & Shapiro, C. (1985). Network externality, competition and compatibility. American Economic Review, (5), 424-440.

Katz, M. L., & Shapiro, C. (1994). Systems competition and network effects. Journal of Economic Perspectives, (2), 93-115.

Li, C. Y., Chen, H. H., & Gao, H. (2015). Research on online game industry charging mode based on network externality. Economy Survey, 32(1), 66-71.

Li, Z. W., Zhong, W. J., & Xiong, Q. (2014). Indirect network externality and competition strategy analysis on B2B platform. Systems Engineering, 29(4), 550-559.

Liu, Z. Y., Li, M. Q., & Kou, J. S. (2015). Strategy research on information products version based on network externality. Management Science Journal, 18(7), 13-26.

Molina-Castillo, F., Munuera-Aleman, J. L., & Calantone, R. J. (2011). Product quality and new product performance: The role of network externalities and switching costs. Journal of Product Innovation Management, 28(6), 915-929.

Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (2005). Supplier integration into new product development: Coordinating product, process and supply chain design. Journal of Operation Management, 23(3/4), 371-388.

Qu, Z. T., Zhou, Z., & Zhou, F. Z. (2010). E-commerce platform competition and regulation with network externality-A study based on tow-sided market theory. China Industrial Economy, (4), 120-129.

Sun, L., & Pan, Q. (2014). Competitive analysis of telecommunication market based on network externality. Foreign Trade, (4), 62-64.

Wen, S. X., & Zheng, C. L. (2009). Two oligopoly enterprises R&D cooperation research based on network externalty. Technology Progress and Ploicy, 26(4), 68 -71.

Xu, B., & Xu, D. L. (2007). Extended hotelling model with network externality. Management Science, (1), 9-18.

Ye, Q. W., Zhang, Q., Du, M., & Song, G. X. (2016). Social network advertising pricing analysis based on two-sided market theory. Marketing, 19(1), 169-178.

Yi, Y. Y., & Zhang, X. L. (2015). Retail market strategy evolutionary game analysis based on network externality. Systems Engineering Theory and Practice, 35(9), 2251-2261.




DOI: http://dx.doi.org/10.3968/n

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 Management Science and Engineering




Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures