Towards A Two-Sided Online Platform: The Case Of China's Largest Online Ticketing Firm

Having established itself as the leader in China’s online ticketing industry, Damai set its eyes on the two-sided online platform to facilitate its next growth phase in 2011. Founded in 1999 in Beijing, Damai had 8 million registered customers and 20,000 distribution agents across China. Their B2C implementation strategy was supported by an online B2C portal and IT distribution system, and this strategy was critical in overcoming China's environmental and institutional adversity in the 2000s. As the ticketing industry continued to expand, Damai moved beyond its operating model to engage the surge of competitors who entered into the Chinese market because of the low entry barrier for ebusiness in China. The new CIO of Damai, Duan Dong Xu, was tasked with the challenge of devising the implementation strategy for the two-sided online platform, which leveraged the current success of the company. This case serves as a vehicle for discussion of the two-sided online platform, specifically from the point of view of a merchant in a traditional seller-buyer relationship. In addition, opportunities, risks, development issues and implementation processes may be discussed.