Live Streaming Video E-commerce: Examining the operational strategies

Live Streaming Video (LSV) is a new form of social media-based entertainment business which is rapidly growing in popularity. Yet little research exists on the operations/strategies of LSV businesses. Thus, the purpose of this study is to investigate ‘what operational strategies does the companies implement in developing their clientele and market share in LSV marketplace?’ The study conducted qualitative semi-structured interviews with key executives in LSV businesses, and interviews data were content analyzed. The results show that: (1) LSV companies develop their operational strategy in four aspects—product, promotion, pricing and distribution; (2) LSV companies benefit from the common video content of e-sports matches and Games, but this commonality has some negative effects because it may shift the market power from the LSV platforms to users; and (3) LSV companies that leverage network effect by offering ‘Danmu’ system—type of online chatting during streaming of video, gift system and hire famous anchors consolidate their market presence. Theoretically, the study provides evidence of a new operational approach that interfaces marketing elements and offers insights into some key strategies for LSV business development. Managerially, the study identifies practical strategies to enhance decision making for entering and sustaining operations in emerging LSV markets.