Research on the Competitive Strategy of Cross-Border E-Commerce Comprehensive Pilot Area Based on the Spatial Competition

Abstract

By now, 13 cross-border e-commerce comprehensive pilot areas have been approved by the State Council of China; Dalian and Tianjin are two of them. But with the development of the construction of the cross-border e-commerce comprehensive pilot areas, the competition between those pilot areas is inevitable. Dalian and Tianjin are located in the Bohai Sea and the distance between them is only 800 kilometers. For Dalian and Tianjin they are in thus competitive situations: first they have to compete with each other; second since they are located in Bohai Sea (North China), they have to compete with other cross-border e-commerce comprehensive pilot areas (South China). In this paper, our aim is to build models to provide best price strategies for these two cities. Based on the two-sided market theory and the geographical position, this paper builds two competitive theory models. Through the analyzing of the equilibrium, we get two main results: (1) according to different service area, the cities (Dalian and Tianjin) should have different price; (2) the two-sided market characters have an impact on their strategies.