Research On Manufacturer's Dual-Channel Strategy In E-Business

Nowadays Internet shopping is becoming the priority preferred way for more and more consumers, and simultaneously the online retailing mode is generally accepted by many companies and applied to the second complementary marketing channel. Internet channel not only makes purchasing easier, but also acts as an important factor which affects the competition outcome among firms. With high development of internet technology and wide spread of electronic commerce application, channels between firms and companies diversitify greatly. Channel diversification has become a challenge for competition how to effectively manage these channels. In order to keep up with the competition trend even gain a competitive advantage, how to design and manage channel mix becomes a key factor for a company to success.The research is done under the background above mentioned. Consumer utility theory and Game theory are used to discuss competitively pricing and choosing problem for dual-channel strategy. Firstly, the thesis considers the dual-channel models of the manufacture under E-commerce. Constructing the dual-channel supply chain model, and the demand and price models based on the consumer utility theory. Meanwhile, the optimal parameters of integrated and non-integrated dual-channel supply chain are analyzed respectively based on the profit maximization principle by matlab. Secondly, under the condition that trying to avoid channel conflict, three kinds of equal-pricing strategy(keeping wholesale price same strategy, keeping retail rice same strategy and maximizing manufacturer's profit strategy) are considered to analyze whole supply chain's profit, manufacturer's profit and retailer's profit respectively. The influence of the consumer attributes and the channel cost attribute to the channel strategy are analyzed based on the discussion above. Thirdly, relaxing the constraint for keeping retail price equal, the profit for the manufacturer and the retailer, retail price and optimal wholesale price are analyzed under Stackelberg completion between manufacturer and retailer respectively. Lastly, the haier case study is further discussed to show the application of dual-channel strategy by manufacturer and the potential profit that would be brought to the manufacturer.