The Study On The Predatory Pricing Strategy Of The Antivirus Software Enterprise In China

Currently the software industry is among the industries which can get the highest investment return. It is also the core and soul of information industry and has important influence on future economic development. In fact, the software industry has already become the focus and the strategic point of all countries in the new round of international competitions. The antivirus software enterprises in China have formed an integrated market system after 20 years of development. The antivirus software pricing mechanism has experienced a process from free trial in the initial development stage and fees with mode renewal to the comprehensive free mode in 2011. In the mean time, the antivirus software has improved from a single function product to a product system chain platform including a great deal of software. From 2001 to 2009 Rising has occupied the first place in the market for consecutive 9 years. Also, it is only 11 months for 360 to implement its official antivirus software and then monopolised the market. Indeed, our antivirus software industry is in a rapid development and reforming period. The antivirus software market has the characteristics of Difference oligarchic competition currently,It means that the market is make up By a few antivirus products monopoly enterprises which have certain different products.There are quite a few questions should be considered by managers of the antivirus software enterprises. For example, what should the management do to properly understand the pricing mechanism and enterprise features of China's antivirus software enterprise? What should they do to cope with the competitive strategies of rivals and potential entrants? What should they do to keep the enterprise's profitability in a completely free market environment?This paper analysed the competitive strategy of the antivirus software enterprises in China from the unique perspective of predatory pricing using strategic management and market competition theory. Based on the study of the characteristics and pricing approach under the internet economy, this paper is aiming to provide strategy reference for market monopolies and competitors. First of all, it evaluates the present situation of antivirus software enterprises and their price forming and operating mechanism. Then it reveals the inevitability of antivirus software enterprises'predatory pricing. Secondly, it uses game theory model to analyse two forms of predatory pricing in antivirus software industry and the respective applicable condition and the implementation of efficacy for each form. Finally, the successful case of 360 has been illustrated in order to give some suggestions to monopoly and competitor for their predatory pricing decisions. The study of this paper has certain reference significance to decision-making for the software companies. In addition, it is helpful to our government sectors in protecting competition and maintaining a healthy market system.