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

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

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