Based On Two-sided Market Theory Of Business Model About Internet Of Vehicles Industry

In 2010,the State Ministry positioned Telematics as emerging industries,accelerating the development of Internet of Vehicles industry in China.At present,China’s car industry is at the beginning.,which manifests as load-vehicle information terminal mode to vehicle manufacturers,some basic telematics services,such as navigation,positioning,entertainment and other functions start applications.Due to the car networking industry is an emerging industry,Characterized as a typical two-sided market,Telematics platform has played a huge role.Currently,there are only two countries car networking platform that freight vehicles Public Regulated Services platform and service platform for life after the car.In the future development of car networking industry,the constitution of vehicle networking platforms has become the key point of the development of the industry.To promote the development of the vehicle network,we must have the right business model.As a new industry in our country,the business model of traditional industry is obviously not suitable for the development of the vehicle network,there is essential difference between the business model of vehicle network and traditional one,focus on the construction of ideas and goals and motivation,rather than the difference between content and form.Vehicle network platform is the core of the vehicle network industry,vehicle network has a bilateral market characteristics,however,the bilateral market is not innate.In the initial stage of vehicle network development,vehicle network industry’s business model is dependent on the car manufacturers,by virtue of the technology and market advantages of automobile manufacturers,the joint construction of the vehicle networking platform for the development of the vehicle networking platform into the initial technology,in order to be able to grow up in a short time.When the car networking platform is increasing,the market competition between vehicle networking platforms is increasingly fierce,the market tends to be disordered,which is a contradiction the car networking business model urgent need to resolve.The vehicle networking platform built by different brands of car manufacturers is relatively closed,the compatibility between different platforms is relatively low,the degree of differentiation is relatively large,the communicate between platforms is very difficult.what’s more important is that for lack of technical flow,key technology of car networking trend to curing within the platform,hard to code and copy,it is difficult to spread in the industry,which has restricted the and technical communication of car networking within the industry.This contradiction directly led to the car networking platform is difficult to expand access to the size of the supplier,to build a complete bilateral market structure also can not produce significant network externalities.In order to alleviate the market competition,car networking industry needs to evolve to the second stage,introducing independent vehicle networking platform,making the car manufacturers out of the car Networking Industry,adjusting key technology structure,basing on common technology,setting the vehicle networking technology standards,and then cultivating the network externalities by using the technical standards of the lock effect,to achieve the balance between the vehicle networking platform.With the car networking platform dependence on key technologies,the impact of key technology on the car networking industry business model has become increasingly prominent.After the key technology breaks up into common technology and core technology.In the locked Technological Paradigm network externalities common technology and core technology,the industry formed a common vehicle networking technology standards,thus changing the previous stage of the business model.Networking platform in the car market,the strength of the network externality common technology tends to be significant,the advantages of network externalities in place common technology platform will increase,making the market demand vehicle networking applications and services has also risen,balancing end user scale,to achieve demand-side economies of scale,thereby reducing the marginal cost,lower equilibrium price,so that competition policy shift reign platform for technical standard competitive strategy,competitive advantage is derived from the demand-side economies of scale,increasing the size and strategic benefits.However,the competition platformcan can only choose price-cutting strategy to attract market demand,its competitive strategy is a traditional price elasticity of demand patterns.Importantly,the bit platform has core technology advantages,however,The larger the core technology,the strength of network externality common technology platform in place,the smaller the role of competitive advantage,that is leverage.In this paper,innovative work includes:Based on bilateral market theory,this article will be divided into car networking technology key common technology and core technology,a common technology with encoding feature.it can be diffused t,liquidity,in the marke and can produce network externalities.This paper studies the evolution of the bilateral track car networking platform market structure,Common technology with network externality is the inevitable result of its evolution theoretically from the theoretical research.From the perspective of key technologies,We studied the effects of car networking technology structure of the car key networking platform competitive advantage relationship,and the use of game theory models were demonstrated.This is a method innovation of research of car networking industry business model.From the technical structure of this study,the key vehicle networking technology has a dual nature,both endogenous theory that the characteristics of tacit knowledge,but also has liquidity characteristics of resources.Thus,the impact of the dual nature of the car key networking technology for competitive advantage car networking platform is also one after another.We concluded through theoretical study that: common technology and core technology relationship with complementary constraints,vehicle networking platform has the advantage of only one aspect is unable to obtain sustainable competitive advantage.Car networking platform has only one aspect th advantage,which is unable to obtain sustainable competitive advantage if you do not match the structure of common technology and core technology.In this paper,the research reflects to a certain extent that the car key networking technology promote change for vehicle networking platform strategy Paradigm.This paper focuses on the vehicle networking industry’s business model.On the basis of evolution of a bilateral market structure,vehicle networking platform use the vehicle manufacturer’s technical advantage and market advantage and take the bundling strategy to expand access of the provider market,and as far as possible with technical superiority or technical differentiation to attract more suppliers access to reaches critical installed base.When bilateral market structure is more and more mature,vehicle networking industry’s business model will also be changed.The vehicle networking platform needs to integrate the needs of various stakeholders and take into both the value creation and value distribution consideration.The key technology of vehicle networking has become the sustainable competitive advantage tool of vehicle networking platform.The vehicle networking industry business model in this stage is capable of forming a mature technology standard and enlarges the network externality continuously to achieve "the strong stronger" competition.The externality and compatibility of common technology network of vehicle networking platform changes the competitive and cooerative strategy between platforms.This paper argues that,in the evolution of vehicle networking platform market structure,the industry is bound to form vehicle networking industry technical standards.The core technology has inhibitory effect on generic technology of network externality,and the more obvious of the core technology’s advantage,the less affection of the common technology’s externality.When the strength of the network externality of common technology increases,end-user scale and balanced income will also increase in the industry reign platform,while the equilibrium price will fall.So the source of competitive advantage in reign platform will the demand side’s economy of scale.When the degree of compatibility of common technology increases,reign platform is bound to give full play to its lateral functional advantages and longitudinal quality advantage,achieve diversified competitive,improve the equilibrium price and lock the core consumers.Although its balanced end-user scale will inevitably be reduced,the reign platform’s balanced income will be able to improve.