Steering Vendor Relationships In The Buyer's Market Research

The firms' relationship is an important issue of economy. This dissertation summarizes some types of relationship. And three kinds of representation that modern retailers dominate suppliers are summed up. Then I probe into the sources of power that modern retailers dominate suppliers in the following chapter, such as the strength of organization, information, channel and the advantage to induce consumers. In the forth chapter, I put forward the welfare criterion that judge if the firms' relationship is ideal or not, and then analyze the mode of unilateral monopoly, bilateral monopoly and vertical integration according to this criterion. The main characters of ideal relationship between suppliers and retailers are brought forward. On the basis of analysis, some pieces of economic policy are advised to adjust the firms' relationship during the period turning to buyer' market.