Sustainable Research About Taobao Platform’s Pricing Strategy

With the development of the Internet and information technology, more deals has become electronic. At the same time, online shopping has impacted the traditional shopping and indirectly changed people’s way of life. On the November112011, Tmail and taobao have owned5.2billion. All in all, e-commerce has become the main driving force, and stimulated domestic demand market.In2003, at the beginning of its creation, relying on the powerful capital support, taobao carried out free strategy. With the further development of the e-commerce, taobao become bigger and bigger. Meanwhile, it has occupied an important market share in the field of e-commerce. Taobao have also tried to change their strategy, and it always searched for the suitable pattern. On October10th, the "taobao shangcheng" incident caused all kinds of concern from all the parties. Tmail improved its technical service fee alone, which led to strong dissatisfaction by small businessmen and economists.The shopping platform—taobao belongs to the research scope of bilateral market theory. In the foreign country, the theory are relatively mature. But, as to the specific cases, which in the trial also have some shortcomings. However, domestic bilateral market theory develop very slowly, and academic research focus on single aspect of theory analysis. Meanwhile, the monopoly analysis in the bilateral market theory is insufficient. In the law regulation level, there are no special terms in anti-monopoly law to the related problems, and in China, current law enforcement supervision still need corresponding professional research. In addition, mixing bilateral market theory and predatory pricing together is difficult.With the implement of free strategy, Taobao have tried to explore different pricing strategies. This paper mainly use the basic theory of bilateral market theory, and mainly aim at the develop platform strategy analysis about taobao. Finally, this paper will give new perspective. This paper mainly divided into five chapters. The first part of this paper expatiates the background and significance, domestic and foreign relevant literature review, and relative innovation and insufficiency. The second part is the key chapter, which refers to the definition of bilateral market, the classification and feature of bilateral market, the economics of meaning and judging standards about predatory pricing theory. The third part is about some current strategy in taobao, mainly involves the free service, a thriving business strategy, big taobao strategy and so on. Meanwhile, this part summarizes its current profit modes. The fourth part is mainly focus on taobao incident, which refers to the relevant market definition, the market share measure, entry barrier analysis, and efficiency influence. At the same time, this part also analysis domestic and international law of regulation.. The fifth part is mainly summarize the whole paper, and puts forward some policy implications.Bilateral market theory belongs to the leading theory in the field of industry economics. This paper mainly based on this theory, focus on taobao’s relative strategies and give new analysis perspective. At last, this paper’s relative strategies will support for relevant departments’ legislation and examine, so as to further promote on the results of the study.