Abstract

Retailer Channel Decisions of Consumer Electronics Supply Chain in a Competitive Environment

Highlights

  • In March 2017, RadioShack sought bankruptcy protection for the second time in just over two years

  • By comparing prices set by the retailer and the manufacturer in the three models, this study finds the following: Proposition 1: The offline retail price decreases when the offline retailer adds an online retail channel

  • To determine the channel structure for the retailer in the consumer electronics supply chain to increase market profits and realize supply chain coordination to the maximum extent in the competitive environment, a consumer utility function was constructed and a Stackelberg game model was established to analyze the various channel decisions of the retailer in a supply chain composed of one retailer and one manufacturer who opened the direct online channel

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Summary

Introduction

In March 2017, RadioShack sought bankruptcy protection for the second time in just over two years. The development of Internet technology and the network economy has promoted demand growth for consumer electronics year after year. The Consumer Technology Association predicted that the retail revenues of consumer technology industry in the United States would exceed $377 billion in 2018, while the investment and development of the electronics industry would reach an unprecedented scale [1]. Faced with such industrial development, why did the industrial giant RadioShack seek bankruptcy protection for the second time in just over two years?

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