An Analysis on the Development of Online Art Sales Industry and the Sustained Competitive Advantages of its Players Based on Porter’s Five Forces Model

Abstract

The rapid growth of online art sales post-2010 necessitates an examination of industry trends and competitive dynamics. This study investigates the current competitive structure, highlighting the need for online art platforms to cultivate trust and innovate technologically to thrive in a crowded market. Adopting a mixed methodology combining The Platform Economy and Long Tail Theory, the research identifies strengths and weaknesses, revealing parallels with e-commerce retail. Industry analysis, employing Porter’s Five Forces Model, uncovers competition intensity, while a case study on artnet utilizes the VRIO Model to assess sustainable advantages. Traffic metrics and qualitative insights from an interview with a platform representative supplement quantitative data, informing recommendations for enhancing market efficiency and adaptability. Data was sourced from websites and a questionnaire-based email interview.