Abstract
Competing manufacturers, who sell their products through retailers, may face the strategic distribution channel design question of whether to establish an “store-within-store” channel or not. With consider of the role of sales effort, we analyze the manufacturer channel strategies. Two cases are considered: competing manufacturer and competing retailer. We built four game models corresponding to four channel strategies, and discussed the influence of manufacture's bargaining power coefficient, prices competition intensity, and sales effort competition intensity on manufactures' channel strategies.
Highlights
The competition form between enterprises gradually evolved into supply chain competition
We built four game models corresponding to four structures (SS, DD, SD, and DS), and discussed each supply chain member’s equilibrium decision in each structure
We built four game models corresponding to four structures (SS, DD, SD, and DS), and discussed the influence of manufacture’s bargaining power coefficient, prices competition intensity, and sales effort levels competition intensity on manufactures’ selections of channels
Summary
The competition form between enterprises gradually evolved into supply chain competition. When supply chains compete on demand, whether enterprises can develop the market and achieve sales and management goals depend on their channel strategies. “store-within-store” channel is common in realistic, and is a kind of business model that sales products in particular area of a market, which has comprehensive advantages in operation management, customer flow and so on. This business model can take advantages of partners, reduce marketing costs, and break through traditional restrictions on developing the market. Li et al (2013) explore the effect of supply chain structure and competition at both manufacturer and retailer levels on contract choices of two competing supply chains.
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