Supply Chain's Market Entering Strategy with Unbalanced Power

Abstract

In this Internet age, global economic integration process increases fierce market competition. In addition to dealing with issues such as geography, culture, technology, knowledge, and close relations of cooperation between enterprises, the enterprises also expanded the scope and space of the competition among enterprises. Market becomes more crowded. At the same time, customer demand over the past simple quality, cost-effective, and after-sales service is quite different; companies need to provide timely quality assurance while meeting the special needs of customers personalized products and services. Therefore, businesses have to cost reduction even more responsive to changes in product demand, distribution and more rapid, more comprehensive service. View the extensive literature on the basis on the powers of the supply chain not including retailers accounted for the dominant and supplier account issues such as the dominant narrative. The introduction of the binary value of the structure, functions can be summarized in the market acceptance of products in use function and enjoyment features. Use features can be known as the basic value, determined by the substitution effect of satisfaction; enjoyment from beyond the performance of an enjoyment features, can be described as beyond the value of the product to meet consumer satisfaction of the fashion and goods function. Market access that is, supply chain ranging from power problems, functions and enjoy the functionality requirements, constraints, where quality and service, and is proportional to the level of product quality and service, the same external coefficient between products, in order to determine the market of product differentiation positioning, companies need to consider the results of price competition, the use of backward induction, first obtain the equilibrium solution of the price competition in the Stackelberg equilibrium, and then get the enterprise product differentiation and positioning strategy.