Manufacturers Based On The Number Of Competition And Price Competition In The Outsourcing Decision-making

With the global economy and information integration, the increasing diversification and personalized of consumer demand make the enterprise complex and in the ever competitive environment. As the body part, manufacture master all the advanced knowledge and skills of the industry which is not realistic because of the limited management power .It is a prior choice that manufacture focus all the resource on large amount of business, especially on the poor business. To gain the advantage in the competition, some big manufacture change the traditional strategy, that is , they only deal with the core business during all the process from material purchasing to research and development, design, manufacture, supply, marketing, sales and service and outsource others to other enterprise.This paper studies the outsourcing decision-making of the manufacturer about quantity and price competition. First, this paper studies the outsourcing decision-making of the manufacturer that produce partially substitutable products based on quantity competition. Second, this paper studies the manufacturer outsourcing decision-making based on production cost and competition tense with chains to chains competition. Third, this paper studies the manufacture outsourcing decision-making based on market risk and competition with chains to chains competition.The conclusions include : First, When the competitors produce, the manufacture also produce only when the customer's perceived value change is not greater than the impact of outsourcing. When the competitors outsource to supplier, the manufacture also outsource only when the production substitution coefficient is larger ,that is competition intensity increase. Second, within a certain range of production costs, Manufacturers outsourcing performance is superior to the performance of production when the competitor has the same supply chain structure with the manufacture. Manufacturers outsourcing performance is superior to the performance of production when the competitor outsource to supplier. Manufacturers outsourcing performance is superior to the performance of production when the competitor produce .Third, When market risk is smaller than the minimum, the expected profit of manufacture with supply chain both with centralized control structure is higher than that both with decentralized. When market risk is larger than the maximum, the expected profit of manufacture with supply chain both with centralized control structure is smaller than that both with decentralized.