Channel Selection And Coordination Of Dual - Channel Supply Chain In E - Commerce Environment

In the e-commerce era, China’s market economy has been growing rapidly. With the increasing market competition, the traditional supply chain channel encounters a huge hit from e-commerce channel. Facing the competition enterprises continue to open up a variety of different e-commerce channels to make their profits and the whole supply chain the best. Especially small and medium manufacturers and retailers combine with their own situation. It becomes a serious problem that how to choose a different e-commerce channels, but it has also become a hot academic research.This paper summarizes dual channel selection and coordination of the supply chain from the scholars. From small and medium sized manufacturers’ and retailers’ point of view, we consider that how to open up a different e-commerce channels with a strong e-commerce distributors and the strategy of the identical price. By means of Stackelberg game theory and Hotelling model, dual channel supply chain modes are established. This paper analyzes the impact of different situations to prove distribution channel management and further provide decision support. The main contents and conclusions of the article is as follows:(1)For small and medium manufacturing enterprises on E-business environment, we(1)For small and medium manufacturing enterprises on E-business environment, we consider two classes of dual-channel supply chains. On one hand, the first class of dual-channel chain consists of internet direct distribution channel and traditional retail channel, and on the other hand, the second one concludes internet indirect distribution channel and traditional retail channel. By means of Stackelberg game methods, a pricing strategy model where manufacturers as leaders in pricing strategy and another pricing strategy model where e-commerce distributors as leaders in pricing strategy are established, respectively. Well-posedness conditions of different distribution channels choices are characterized. The numerical results illustrate that in the internet indirect distribution channel, distributors with different responses for the wholesale price level of products have different impacts on traditional retailers, and so far as to make retailers get away from retail channel.Under the premise of traditional retailers participating in the channel, different channel costs affect mall and medium manufacturing enterprises’ strategies on the channel choices. In a certain sense, our research results are of some importance for small and medium manufacturing enterprises to choose different internet marketing channels.(2)Nowadays, it is commonly observed that the retailers are willing to set up an online channel in order to engage direct online sales. For the distribution channel selection of retailers on e-business environment, this paper studies two classes of distribution channels composed of one manufacturer and one retailer. For the first class, there is only one traditional offline retail channel and meanwhile, the second one includes both online channel and traditional offline retail channel in the identical price strategy. By means of Stackelberg game theory and Hotelling model, two pricing strategies are established,respectively. Well-posedness conditions of different distribution channels selection are characterized. We show that manufacturer actively promotes retailer to choose online and offline dual-channels. In the online distribution channel, we identify a finding that the different channel operational costs have different impacts on retailer’s decisions on channel selection. Furthermore, we manage to design a revenue-sharing contract to achieve the dual-channel coordination. In some sense, our research results are of some importance for the retailer to choose distribution channels and dual-channel coordination issues.