Research On Channel Selection Model Between Competitive Telecom Supply Chains Considering Market Structure And Efficiency Difference

With the advent of the mobile Internet era, mobile terminal equipment has gradually become a necessity in our lives. Mobile terminal market competition is more and more intense, the same as the telecom operation market. Telecom supply chain consists of terminal equipment manufacturer and telecom service provider not only provide better products and services, but also try to use reasonable pricing and sales strategy to maintain their own competitive. There are two common sales channel: free pricing and bundled pricing. Bundled sales means that the terminal manufacturer and telecom operator sale the terminal equipment and telecommunications service with a bundled price. In this paper, under the assumption of linear demand,two telecom supply chains in telecommunication industry are taken as the object of study. Each telecom supply chain is composed of a terminal manufacturer and a telecom operator. We explore the channel selection strategy issues of the two telecom supply chains in two dimensions (efficiency differences and market structure), four different market conditions. The four market conditions are: supply chains cost structure is symmetrical and the market power structure symmetrical; supply chains cost structure is symmetrical and the market power structure is asymmetrical; supply chains cost structure is asymmetrical and the market power structure is symmetrical; supply chains cost structure and the market power structure are both asymmetrical. The main conclusions obtained by solving and analyzing are as follows:1. In the case of two telecom supply chains having same market power, when the market competition intensity is relatively small, the two supply chains choose bundling pricing to participate in market competition. When the market is highly competitive, the two supply chains choose free pricing to participate in market competition2. In the case of two telecom chains having different market power, the telecom supply chain with dominant market power takes bundling pricing to participate in market competition. For the telecom supply chain with disadvantage market power, If the cost structure of the two supply chains is symmetrical, when the market competition intensity is relatively small, they take bundling pricing to participate in market competition; when the market is highly competitive, they will take free sale to participate in the competition.If the cost structure of the two supply chains is asymmetrical, when the sum of the cost of the dominant supply chain is low, they take bundling pricing to participate in market competition; when the cost of the dominant supply chain is high, they will take free pricing to participate in market competition.