Research On Differentiation Strategy Of Platform Enterprise Based On Two-sided Markets

With the development of Internet technology and the implementation of "Internet+" project by government,not only many traditional enterprises that have accessed to the Internet but also the newly established enterprises are mostly platform enterprises.The platform enterprise,enjoying the characters of two-sided markets and the cross-network effect,is an enterprise,which has two-sided users—consumers and sellers.Platform enterprises mainly provide users with content or information services.The increase of the amount of users and the transformation of the multi-home users into single-home users are two primary parts of platform enterprises’ competition.Similar with the competition strategies of traditional enterprises,the competition strategies includes the price strategy,the entry strategy,the differentiation strategy and so on between the platform enterprises.The differentiation strategy can reduce the possibility of price war,increase the conversion costs of users in the platform and curb the possibility of accessing to others.Platform enterprise usually provides consumers with accurate service or enhances its overall quality through cloud computing and big data.In other words,these differentiation strategies enlarge its market share and profit via enhancing the utilities of users.This paper has focused on the differentiation strategy of platform enterprises based on the theory of two-sided markets.It has concentrated on the impact of differentiation competition strategy on their profits,weakening the pricing analysis.The article has solved the optimal of the platform enterprises,by taking multi-home users and different scale of them into account.Firstly,the article has made a comprehensive review on the relevant literatures,and defined the differentiation strategy and the scale of the platform enterprise.Then,it has set the expression of three parties on the platform enterprise.Meanwhile,a two-stage complete information dynamic game model has been conducted.Secondly,by the sub-game refinement Nash equilibrium and the method of control variable,the profit response equations of the two platform enterprises under same scale and different scale have been deduced.Besides,the equilibrium result of the two platform enterprises in the oligopoly market has been solved,with analysis and discussion underway.Lastly,in order to verify the correctness of formulas,this paper has choosen the numerical simulation and the construction the three-dimensional image.The conclusion is that firstly,on the Internet,any information can be timely to be known,the excess profits generated by a platform enterprise’s differentiation strategy may be divided up by the opponents and sellers and consumers on the platform in very short term.As the information is complete,we can think that the Internet market is more efficient.Under the condition of the certain amount of consumers,the similar scale platform enterprises can be classified as zero-sum game in providing accurate services,without the exogenous or endogenous multi-home consumers.In the different scale platform enterprises’ competition,the large-scale platform enterprise with more consumers can get more profits,while the small-scale profit less.In the long run,two platform enterprises are under the competitive equilibrium.Secondly,in upgrading the overall quality of the platform enterprise,the similar scale of platform enterprises have the follow-up strategy situation,which is similar to the traditonal market’s.While the two platform enterprises are different in size,they will provide consumers with the same quality of service based on rational human assumptions.