Author(s)

Zhihan Ge, Yingjing Shi, Xiayu Wang

Corresponding Author

Zhihan Ge

ABSTRACT

In today's internet economics environment, the platform strategy, which could help companies gain competitive advantages and even dominate the market, has become a key for companies to achieve sustainable development. However, the development of the platform requires processes. Especially for platforms that initially focus on a single content area or business, the way to layout other industrial chains and attract more users to achieve diversification has become a question worth exploring. We took the Chinese video-sharing website Bilibili, a platform whose development is always based on the content fields of animations, comics, and games as an example to answer the above research question. Through a qualitative single case study, we formulate a framework to explain the diversification mechanism of the platform, which includes three phases, identification of diversification feasibility, development of sustainable competitive resources, and application and reinforcement of network effects and learning effects. The framework also summarizes some critical conditions and key actions the platform needs to be equipped with at each stage and the rationalities behind it. Based on an internet perspective, this study provides a qualitative empirical framework, enriches research related to platform development, and contributes to guiding management practices.

KEYWORDS

Platform Development, Diversification, Network Effect, Learning Effect, Case Study, Bilibili