Perturbations Of The Cost Of Production, Consumer Electronics Channels Ripple Effect

In the consumer electronic market of China, the duopolies retailers, Gome and Suning appliance chains have been dominated the channel power, they control the channels operation. With the intensification of commercial intensification, all of the enterprises have to face complicated exterior environment. It leads supply chain so the supply chain and the enterprises present extraordinary uncertainty. Facing the increasingly complex external environment, in order to ensure they profits, Gome and Suning passed on the risk to the manufactures with the adoption of giving pressure to the manufacturers. All of these lead to the growing conflict and dispute of manufactures and Gome and Suning in the traditional channel. With the advancement of information technology, the network channel becoming a sunrise one in consumer electronic market represented by the 360 buy.com and all3c.com.The new channel's low prices and new shopping experience earn part of consumers. This sunrise network channel not only provides a new choice for consumers, but provides a new distribution channel for the manufacturers.This paper according to the actual situation in Chinese consumer electronics market, studies the Gome and Suning duopolies traditional channel and a growing Internet channel. At first, the paper studies the traditional home appliance chain channel, in the study, we consider the duopolies retailers as the channel leaders and discuss supply chain ripple effect with Retailer Stackelberg under the different retailer's strategies. Then, we choose the drop-shipping in network channel, consider one manufacturer and one retailer model and discuss the changes when the product cost disrupt. Finally, on the base of two single-channel, we focus on the dual-channel model, one manufacturer and two retailers in two different channels(one manufacturer to one traditional retailer and one network retailer), in this model, we consider the free riding phenomenon, discuss the influence of ripple effect on dual-channel supply chain.During the study, not matter in the traditional channel or in the network channel, when the product cost being disrupted, the retailers'different price strategies will leads to different ripple effects of supply chain and supply chain members,different coping strategies have their own best scope of application. Besides, we consider that the dual-channel supply chain may have the stronger stability. When the manufacture choose dual-channel to sale the products, the power of traditional retailers have been weakened, the profit distribution of supply chain become fairer. This situation is favorable for both of the channel members and it can effectively reduce the risk of supply chain.