Internet strategies based on a dynamic competitive model
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Abstract
The present paper studies the characteristics and strategies suggested by a model of web sites competition dynamics, based on the Lotka-Volterra competition equations. The model captures the well know winner-take-all characteristic that is caused by the strong positive feedback mechanisms linked to high competence. From the analysis, both quantitative and qualitatively, of the model a series of strategic recommendations are offered to reach success, that prove to be coherent with the trends observed in the Internet real market. Among the above mentioned recommendations, the strategy of coopetition is highlighted as the most suitable option for small sites in order to deal with the leaders of the Net, being this one of the most interesting and novel behaviors that arise from the above mentioned analysis. This alternative strategy to the competition is backed by the predictions offered by a model of competitive dynamics. Furthermore, a series of interesting strategies for start-ups sites or new comers to the market are suggested, like segmentation and affiliation programs between vertical portals.
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