Two_side_Market_雙邊市場(chǎng)

1、STRATEGIES FORTWO SIDE MARKETSG5 groupWhat is the two-side marketsChallenge 1: Pricing the PlatformChallenge 2: Winner-Take-All DynamicsChallenge 3: The Threat of EnvelopmentCase AnalysisG5 groupWhat is the Two-Side MarketsG5 groupDevelopment & DefinitionProducerConsumerMarketCostRevenueOne-Side

2、 MarketProducerConsumerPlatformsMarketCostRevenueMarketCostRevenueTwo-Side MarketTwo-sided markets, also called two-sided networks, are economic platforms having two distinct user groups that provide each other with network benefitsProducerMarketConsumerPlatformG5 groupStructural Characteristics It

3、include two effectsPlatformsSide1Side2Members of at least one group exhibit a preference regarding the number of users in the other group Cross-Side EffectSide1Side2PlatformsEach groups members may also have preferences regarding the number of users in their own group Same-Side EffectG5 groupChallen

4、ge 1:Pricing the PlatformG5 groupPricing without taking network effects into account Traditional pricing logic seeks the biggest revenue rectangle (price quantity) under each demand curve.G5 groupPricing with taking the network effects into account Long as the revenue gained (red box) exceeds the re

5、venue lost (light blue box), a discounting strategy is profitable. The subsidy largely changes network size.Subsidize the consumer sideG5 groupPricing with taking the network effects into account Subsidize the developer sideIn this market, consumers care more about access to critical features. The m

6、ain effect of a subsidy is to change network value.G5 groupA Question Which side should be subsidized G5 groupFactors need to be considered 1, Ability to capture cross-side network effects.Subsidy SideYour Platform Rival Platform Money SideUSER 1USER 2USER BUSER AYour giveaway will be wasted if your

7、 networks subsidy side can transact with a rival platform providers money side.G5 groupFactors need to be considered 2, User sensitivity to price.Consumer DemandDeveloper DemandPricePriceQuantityQuantityOld PNew POld QNew Qd Q1Old PNew POld QNew Qd Q2d Q1Generally, it makes sense to subsidize the ne

8、tworks more price-sensitive side and to charge the side that increase its demand more strongly in response to the other sides growth.G5 groupFactors need to be considered 3, User sensitivity to quality.D1D0AC1AC0PriceQualityP0C0C1Q0Q1High sensitivity to quality also marks the side you should subsidi

9、ze. This pricing prescription can be counterintuitive: Rather than charge the side that strongly demands quality, you charge the side that must supply quality.Developer StrategyG5 groupFactors need to be considered 4, Output costs.PriceMCQuantityQuantityD0D1PriceQ0Q1C0C1QaQbConsumer COSTDeveloper De

10、mandP0P1Blue box Yellow box, then it will be profit Pricing decisions are more straightforward when each new subsidy-side user costs the platform provider essentially nothingG5 groupFactors need to be considered 5, Same-side network effects.Developer quality ADeveloper quality BQ1bQ1aQ2bQ2aIn most m

11、arket, sellers would be happy to see fewer direct rivals; the same can be true for buyers when goods are scarce.In the face of strongly negative same-side network effects, platform providers should consider granting exclusive rights to a single user in each transaction category and extracting high r

12、ent for this concession.6, Users brand value.All users of two-side networks are not created equal. The participation of “marquee users” can be especially important for attracting participants to the other side of the network. Challenge 2: Winner-Take-All DynamicsG5 groupG5 groupFighting strategyTo C

13、hooseHold the MarketShare with rivalsG5 groupSTEP1: Know the Fighting conditionTo JudgeWhether the market is destined to be served by one platformG5 groupServed by one platform condition Multi-homing costs are high for at least one user side. Network effects are positive and strong-at least for the

14、users on the side of the network with high multi homing costs. Neither sides users have a strong preference for special features.G5 groupStep 2: Winning the battle1, At a Minimum Cost or Differentiation advantages ATC0ATCMRMCDQualityPriceQ C C0 PATCMRMCDQualityPriceQ C PD1 P1Minimum Cost Differentia

15、tion advantagesG5 groupStep 2: Winning the battle2, Platform providers gain an edge when they have preexisting relationships with prospective 3, High expectations generate momentum in platform wars, so a reputation for past prowess helps a great deal 4,In a war of attrition, deep pockets matter G5 g

16、roupONE MORE THINGS .G5 groupFirst mover not always decisiveStrong pressure to amass users as quickly as possible G5 groupChallenge 3Threat of EnvelopmentG5 groupWhat is it?Smart phoneVideoGPSPhonePCReal damage:Your platforms functionality just as part of a multiplatform bundle. ManyDifferentiatedea

17、sy entryprice makerMonopolistic CompetitionG5 groupHow to do?1. Change business models.Business modelManaging a platform builds system integration skills that can be exploited.Consumers:Free$10 per month RealNetworks Rhapsody (2003)Content companies: PaidMusic companies:FreeBenefit Leadership Strate

18、gy:higher C , much higher q and PG5 groupHow to do?2. Find a “bigger brother.”Real networksCellular phone companiesCable TV operatorsPlasticplantStamping shopAluminumfactoryFound allies through partnershipsTotal solution by vertical integrationCost & Benefit Leadership Strategy:Higher q and P, l

19、ower cost due to larger scaleG5 groupHow to do?3. Sue: consider legal remedies by antitrust law. Vigilance is crucial for a focused platform provider.G5 groupCase AnalysisG5 groupExamples Of Two-Sided Networks G5 groupCASE 1: CTRIP G5 groupSubsidize to consumerTwo factorsconsumer sensitivity to pric

20、e is highconsumer strongly demands qualityCharge to producerAgency fees for hotel reservationAgency fees for air ticket reservationTourism products agency feesCorporate travel service feesOnline advertising feesLow price hotelCheap flights ticketsCheap tours ticketsHotel orders with cash couponsFlig

21、hts ticket orders with cash couponsPoints redeemPricing strategies G5 groupFighting strategies Tourism products should pay for the agency feesMore consumer will bring scale valueAll the platform are similarThe market will be served by one platformAdvantageHold the MarketFirst MoverHigh expectations

22、generate momentumDeep pockets matterG5 groupEnveloping strategies Integrate the air tickers booking , hotel reservation and travel counseling businesses CASE 2: WeChat Banking G5 groupThe New Way To Connect G5 groupWeChat Features G5 groupBankIndividual customersPlatformWeChat Banking G5 groupAbilit

23、y to capture cross-side network effects Achieve the cross-side network effects The real secret of success is not to buy the monetary fund The real secret of success is the application of technological innovation, customers can realize at the time of shopping as a automatic redemptions User sensitivity to price In just four months, the scale broke the 100 billion Alipay users are very sensitive to price, especially Taobao users even to snap up