Advertising And Pricing Strategy Analysis Of Lateral Supply Chain Competition

With the development of economic globalization and science technology, supply chain become across the enterprise to integrate all business management integration, is one of the important thoughts and modern enterprise management methods, the competition between enterprises has developed into the supply chain competition. In the competition between the supply chain mode, the horizontal and vertical competition coexist, within the chain suppliers to consider and game of downstream retailers, consider the decision-making of supply chain competition between chain’s impact on their own. Advertising as a marketing influence consumer demand is common, also has become increasingly important in the position in competitive supply chain. At the same time, in a complex supply chain competition environment, how to reasonably to advertising, make suppliers and retailers will each unique advertising resources together and effectively conformity; how to reasonable pricing, suppliers and retailers to obtain the biggest profit; so as to provide the basis for enterprise decision makers is the issue of competitive supply chain is widely studied.This article first embarks from the factors influencing the demand function of the supply chain, and outlines the domestic and foreign about price factors and non-price factors affecting demand function (the quality of our products and services, advertising) literature, focusing on the analysis of the advertisement affect demand model of supply chain. Then, considering the supplier share a percentage of retailers advertising costs under the premise of centralized decision-making and decentralized decision making is studied respectively, single to dual supply chain competition model of advertising; the pricing and advertising strategy of supply chain members is obtained; based on the analysis comparison results available suppliers and retailers advertising cooperation conditions; then apply MATLAB software for example simulation, and research conclusion for further validation of the model, to explore advertising difference coefficient on supplier and retailer’s pricing, advertising strategies, and affect their profits. After the double chain are set up supply chain competition model of advertising; respectively to study the centralized decision-making and decentralized decision making model under double competitive pricing and advertising strategy of supply chain members; at the same time with the double chain are not advertising into the benchmark model of the supply chain of comparison, it is concluded that the conditions of the supplier is willing to cooperate with retailers advertising; finally simulation through an example, and research conclusion for further validation of the model, discuss the product price coefficient of the supplier and the retailer’s pricing, advertising strategies, and affect their profits. At the same time examines the retailer and supplier selection decision model analysis of an example. Studies have shown that decentralized decision making, the dominant supplier has a first-mover advantage; In the case of single input advertising, concentrated decision-making income is greater than the decentralized decision making; But while the double chain are for advertising, the benefits of centralized decision making is not necessarily greater than the decentralized decision making. The last part of the paper summarizes the research results of this paper and points out the further research direction.