Study On Channel Confilct In E-commerce

The development of Internet has greatly narrowed the distance between manufactures and customers. Many manufactures open up direct Internet channel while the channel conflicts otherwise maybe the benefits of both themselves and the retailers will be ruined. Therefore, the coordination of dual channels is important to the success of the supply chain.In the paper, firstly we study the formation process of conflict, the types of conflict, the produced cause and the influence of conflict. On the basis, we analyze the available structure from supply chain and value chain. Then using game theory, establish game models for channel conflict. We can find that: for the members of channel, cooperative can increase profit and realizing a win-win result. We analyze a scenario where a manufacturer with a traditional retailer opens up a direct Internet channel that is in competition with the retailer. And analyze the situation of profit to manufacturer and retailer in the different pricing method: the competition pricing condition and the vertical integration pricing condition. And the obtain the conclusion that: the vertical integration pricing strategy can realize the increasing profit of the whole supply chain.Finally, on the basis of models analysis, we offer some constructive advice to help the manufacturer to building and manage the channel conflict.