Study On The Durable Manufactures' Marketing Channel Choice Based On Oligopoly

In recent years, the rise and rapid development of e-commerce has brought great changes to society, simultaneously it also has brought great opportunities and challenges to the development of enterprises. Many enterprises changed their marketing strategy and channel to adapt to the quick development of society. the Dell ended a single direct channel which was its hallmark in the past 23 years in 2007, relying on dense network of distributors Lenovo Group has got great success in China, but it began to open up the telephone direct channel in 2004. The SAS, whose strategy is only renting not selling the product, is thinking to change its traditional strategy for the market of Chinese SMEs. Selling or renting product? Choosing a direct or distribution channel? The author will expound his views about the above two questions in this thesis.This thesis make the manufacturer as the core and study the durables'marketing channel choice based on e-commerce at the request to maximize profits. First, we construct a two period static game model and study the durable goods manufacturers'choice of leasing and selling strategy under the condition of duopoly competition, supposing that the depreciation rates of selling and leasing the durable goods are the same, the discount factor of the manufacturer and consumer both are 1, and the secondary market is perfect. the results show that : under the condition of duopoly competition, the sale is the only dominant strategy, the depreciation factor does not affect the manufacturer's strategy of choice, but when it reaches a certain threshold the social welfare changes from the Pareto improvement to Pareto optimal. Second, we construct a multi-period dynamic game model without considering the depreciation factor and discount factor of the durable goods in the fourth section of the thesis, which suppose that the game between the single manufacturer and distributor is the Steinberg Game and study the problem of the double marginalization effect and the time inconsistency of durable goods in the distribution channel at the same time and compare the profits of direct channel and distribution channel. The results show that: in the two cycle settings, the profit of direct sales channel is greater than the distribution channel; in a longer period setting, the profit of distribution channel is greater than direct sales channel, and the profitable growth of the distribution channel is faster than the direct sales channel. Last, we construct a three-period dynamic game model, which consider discount factor and depreciation factor at the same time and study the effects of the two factors to the manufactures'profits in the direct channel and distribution channel. The results show that: both factors can change the channel choice of durable goods manufacturer.