Analysis Of China’s E-commerce Platform Industry Based On SCP Paradigm

From 1999, the first e-commerce platform- Alibaba officially launched, China’s e-commerce platform has made a rapidly development. It currently has developed from B2 B to B2 C & C2 C, changed the ordinary consumers’ transactions. Generally speaking, as a new way of shopping, China’s e-commerce platform industry is gradually being touted by citizens, e-commerce developed from the embryonic stage to the mature stage is not so easy, it will also encounter some bottlenecks.Now, the most prominent problem is that the e-commerce platform industry has a high market concentration, so that some platforms have a monopoly power, its monopoly behavior is not legal; the scale of the platform expanded and the transaction volume increased, however, platforms have got no profitability, these problems restricted the development of China’s e-commerce.In this paper, we take the SCP paradigm as research framework, study from three aspects:market structure, market behavior and market performance. Firstly, this paper uses the data of China e-commerce research center to analyze the market structure of China’s e-commerce platform and the competition behavior.Secondly, It analysis the influence of the market behavior on the industry. Thirdly this paper make an empirical analysis based on the data of e-commerce industry to study the factors affecting the performance of the market.By investigations, this paper got following conclusions:(1) The market structure of e-commerce platform has the characteristics of high market concentration, no difference in products and services, high barriers to entry, low barriers to exit;(2)The market behavior of e-commerce platform industry has these questions:severe price competition, the differentiation strategy is not be concerned, monopoly enterprises is becoming series;(3)The main problem of the market performance is that expanded market transaction followed with low profits of listed companies, Financing difficulties, etc..Therefore, this paper discusses the reasons of these problems, and put forward that if our country want to promote the healthy development of China’s e-commerce,it should limit excessive price competition, encourage differentiation strategy, improve the legal environment, etc..