Brand and channel competition under different dominant structure

Abstract

This paper is based on the two-stage supply chain, considering the situation that manufacturer opens direct sale channel and retailer provides private products. According to the fact that different ownership has a great influence on the supply chain structure, we establish the mathematical model, and analyze the impact of supply chain structure on supply chain members' profit and pricing strategies when there are the competition between direct channel and retail channel, and the competition between manufacturer's brand products and power retailer's private products under different dominant structure. The result shows that, when manufacturer as the leader of supply chain opens direct sale channel, retailers can reduce loss by providing their private products. When channel competition intensity is small, providing private products is not conducive to manufacturer;In the case that dominant retailer provides provide products, when brand competition intensity is very small, it is unprofitable for manufacturer to open direct channel. And when brand competition intensity is larger, opening direct channel is beneficial for manufacturers. With the increase of brand competition intensity, retailers should reduce brand products' and their own products' retail price.