With the rapid development of the Internet, the competition among internet platforms is becoming increasingly fierce. Differentiation strategy, as an effective means of competition, has a significant impact on the development of internet platforms. This study takes Bilibili as an example and uses the SWOT analysis method to explore the impact of differentiation strategies on internet platforms and summarizes the role of differentiation strategies in improving user experience, increasing user stickiness, and diversifying profits through analysis of Bilibili's differentiation strategies. The research results show that differentiation strategies have brought significant competitive advantages to Bilibili. It includes maintaining the basic advantages of a large number of young people and anime users and expanding their user groups, improving user experience, increasing user stickiness, stabilizing profits, and growing steadily. In the future, it is wise for Bilibili to dilute the differentiation on the user base and explore more methods to increase user loyalty. At the same time, Bilibili must seize the opportunity of advertising growth and explore better advertising monetization models to achieve stable and steady profit growth.