The transformation and restraint of Personal Network Entrepreneurship a case study of Taobao network

with the development of electronic commerce in China and the popularization, more and more people choose the network as a business way, found that these entrepreneurs have cost, low risk, simple organization characteristics, the entrepreneurial opportunity makes a large number of individuals are rapidly and scale into occupation e-seller. These network sellers to sell products on the Internet as a career, and is committed to bigger and stronger own shop, belonging to the survival of entrepreneurship. In general, the network seller open shop is the beginning of a "self-employed", its purpose is to make a living or interest and create a business heart, when the shop develops to a certain stage, the seller must carry out the professional management of the business, but also have to think about issues such as development strategy, brand, supply chain, so the network the seller has entered the "company" stage.

initially sellers try to sell some products on the e-commerce platform stage. This phase of the seller lack of e-commerce experience, online credit and reputation are very limited, the core competitiveness is relatively weak. Later, the seller is determined to further develop their own shop, the network seller has a certain experience, credit and reputation in the growing. With the increase in the volume of transactions, the vast majority of sellers at this stage has been put into full custody of the shop. It is one of the signs of the success of the personal network that the network seller can succeed in entering into the period of running the company from the mature stage and establishing the core competence of the company. However, the transformation of the network seller will face some constraints.

specific analysis is as follows.

(1) due to the network sales price is very transparent, and the vast majority of online shopping crowd is price oriented, so network sales is a typical low-cost competition. Network of sellers in order to ensure profits, is not possible in the operating costs of spending too much, must be limited in Internet marketing, technology innovation, product innovation investment, which in turn limits the ability of the website semantic differences, hinder the rapid development of the shop.

(2) online sellers because not registered individual operators, and there is no real asset investment needed financing environment than offline entity operators, is more dependent on their own savings or financing to relatives and friends. In recent years, due to low barriers to entry into the network of retail competition is extremely intense, making the network sales profit is getting lower and lower.

(3) from the point of view of rapid growth, to open stores, other channels to expand, mergers and acquisitions are the main way to achieve the growth of traditional enterprises, but these are not suitable for network sellers. Because the core advantage of online sellers create online, online sellers only authorized users created or accumulated brand, service quality, credit, if the network seller to expand into other channels, such as network stores, phone sales, its core advantage gone. At the same time, open stores, mergers and acquisitions in the online shop to achieve the brand extension is not very suitable, because the shop on long-term credit and reputation accumulation, these are not shared between the branches or union shop. Network sellers can only pass through each

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