Study On Vertical Structure Of Multi-Supply Chains Price Competition

With the increasing integration of the global market economy, competition between enterprises is gradually evolved into the competition between supply chain and supply chain. But the Mode of supply chain competition is also in change, already from a single chain of competition into chain to chain competition. In this paper, based on the double chain to chain competition, we expand the chain to chain competition of the supply chain to multi-supply chains competition, and draw the appropriate conclusions.At first, based on the principles of economics, the dissertation constructs two layer supply chain price competition model with a linear demand function. Under the Stackelberg game we analyze the supply chain competition results in three scenarios:centralized scenario, hybrid scenario, decentralized scenario. We show that when the level of competition intensity is low, centralized scenario is Nash equilibrium of supply chain structure choice; when the level of competition intensity is high, decentralized scenario is Nash equilibrium. There exists prisoners’dilemma phenomenon.At the second, based on the competition of two chains, the paper developed from double chains competition to multiple supply chains competition, namely under the Stackelberg game, we constructed multi-manufacturers and multi-retailers component of the multi-supply chains with price competition model. Through controlling the number of centralized and distributed chains in the hybrid structure, we accurately discussed the Nash equilibrium of hybrid scenario with linear demand function. We found that when the market share of each supply chain was less than the average market share,the appropriate competition was in favor of the increases of supply chain profit, but with the strength of supply chain competition increasing, the overall supply chain profits trend to decrease. With further comparison of the supply chain industry profits, we found that when the circumstances of each chain is in the equalization of market share, the intensity of the product intensity of competition will impact on the equilibrium structure of the supply chain. When the intensity of competition is very intense, pure distributed supply chain will be better than a pure centralized structure, as well as dominant conclusion of the supply chain in the hybrid scenarios; It proves that the number of centralized and distributed chain will determine the competitive advantage of the hybrid structure of the supply chain.Finally, based on the analysis of the notebook computer industry, associating Lenovo, DELL (DELL) and Hewlett Packard (HP) supply chains competition as the research background, the data analysis in this paper verifies validity and rationality of the model and the research content.