Pricing and alliance selection for a dominant retailer with an upstream entry

作者: Yong-Wu Zhou , Zong-Hong Cao , Yuanguang Zhong

DOI: 10.1016/J.EJOR.2014.11.004

关键词: Single marketProfit (economics)Dominance (economics)Industrial organizationBusinessCommerceSupply chain managementAlliancePricing strategiesSupply chainVendor

摘要: Abstract We consider the problem of pricing and alliance selection that a dominant retailer in two-echelon supply chain decides when facing potential upstream entry. The consists retailer, an incumbent supplier “incursive” vendor, where both vendor sell substitutable products to common market through retailer. Our objective is discuss whether should vendor's and, if so, how strategically selects structure maximize his/her own profit. also present all members make their decisions analyze impact competitive intensity between two on strategies after entry possible settings. results show that: (1) introduction always benefits more interestingly, suppler many cases, too; (2) this paper, we define ability as price dominance one player over another are competing for same customer market, competition relatively fierce, ally with who has strong rather than other weak ability; otherwise, he/she members. Finally, using numerical examples, different parameters provide some management insights.

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