Research On The Different Competition Mechanisms And Performance Under Chain-to-chain Competition

More and more uncertain economic environment and intense competition in the market have caused great difficulties for enterprises to develop strategic decision. In this case, the traditional mode of competition of the "Business to Business" must be changed into the mode of "supply chain to supply chain". How the competition among chains happens, which decision mechanism should be chosen when enterprises compete with others, how about differences among competitive mechanisms are. There are so many questions should be taken into account by enterprises.Based on the changing patterns of enterprises competition in the real economic environment, the paper adopts the normative methods of the new industrial organization and game theory to investigate the competition issues between two supply chains, which is a a typical issue of Industrial Economics. Not only are the synergistic relationship between supply chain structure and Competitive Behaviors concerned, but are the chain-chain competition models contrasted under different competition mechanisms, then the equilibrium performance differences of enterprises and the industry are found. According to the different supply chain structures and decision-making mechanisms between competitors, three different types of chain-chain competitive mechanism are defined, including the competitive mechanism between two integrated supply chains, the competitive mechanism between two decentralized supply chains, and the competitive mechanism between the two types of supply chains. The concept of the market entrance timing also is considered. On this basis, the competition mechanism was subdivided into sequential and parallel competition model in turn. The paper developed a game model to analyze these issues, and obtained the equilibrium strategies. Based on the above analysis, we tried to analyze competition between different supply chains roundly. Then the paper examined the impacts of product differentiation and potential market share on the equilibrium results, and discussed what these changes implied in the economic implications. The main conclusions of this article are as follows: First, when the market size is constant, no matter which mechanism was adopted, competition, both the optimal price and equilibrium profit would be lower along with the increased competition in the market. Secondly, different from the general conclusion of in-chain competition model, the integrated supply chain is not always able to obtain the highest profits in the competition with the other supply chain.The major innovations of this paper include that we define the sequential and parallel competition model, and analyze three types of chain-chain competition models. Thus we complement the research content in this field. Based on these insights, meanwhile, this paper tries to provide some theoretical consideration for enterprises to choose strategic decision.