Economic Analysis On The Channel Competition And Channel Cooperation

In 21st century,business faces stiff competition.To effectively deal with global competi- tion, it is wise to Chinese enterprise to build marketing channels based on the supply chain th- eory. The discussion about the mechanism of channel competition and channel cooperation has vital practical significance to control conflict level and to form stable close channel relations. At present, it is needed to systematical research and analyse the mechanism of channel competition and channel cooperation to guide the design and practice of Chinese enterprises channel management.In this paper,economics theory and game theory has been applied. The article startes with the connotation of channel competition and cooperation and re-present its classification.The Vertical channel competition and cooperation will be divided into two kinds: the behaviour based on collaborative relationship and the behaviour based on narrow cooperative relationship.The Horizontal channels competition and cooperation will be divided into behavi- our based on mutual relationship and behaviour based on narrow cooperative relationship.Also , Sequencing analysis in the vertical channels has been done, including the game behaviour analysis between manufacturers based on the collaborative relationship,and the behaviour motivation, cooperation conditions,stability of cooperation based on the narrow cooperative relations. Furthermore the conclusions and management measures had been given.Finally, to horizontal channels based on mutual relationship,static and dynamic game model had been sat up and analysis has been done .General conclusions about its behaviour ,motivation, instability and management strategy has also been given.This paper hopes to provide theoretical basis for Chinese enterprise in business planning, marketing channels management to effectively promote its competitiveness .