The Competition Strategy Analysis Of China Post Express And Private Express Enterprise In A Mixed Duopoly Market

China’s express service originated in the1980s, and it was mainly monopolized byChina Post Express at that time. In the1990s, a number of private express enterprises hadestablished, and China’s express service began to take off. In recent years, thanks to thee-commerce, the express service comes to a rapid development. So far, China’s expressindustry has formed a mixed oligopoly market in which state-owned enterprise andprivate enterprises compete together.This thesis studies duopoly express service providers’ price and capacitycompetition based on mathematical models. Assume the private enterprise competes withstate-owned enterprise to realize the maximum profit, while the state-owned enterprisecan choose either maximum social welfare or maximum profit as its objective. Wecompare social welfare between the two competition strategies of state-owned company.The result shows that when technological condition remains exactly the same betweenthe two companies, it doesn’t matter whether state-owned company chooses to maximizesocial welfare or profit as its objective; when technological condition varies, however, inorder to realize maximum social welfare, state-owned company should maximize itsprofit as objective when its efficiency is relatively low, and maximize social welfare asobjective when its efficiency is higher than that of private enterprise.