Impact Of Retailer Dual-channel Strategr On Manufacturer Channel Encroachment

In recent years,e-commerce has developed rapidly by the "high speed train",while promoting the online shopping of "staying at home" and "buying anytime and anywhere" to be favored by so many consumers.The advantages of the online retail market have become increasingly prominent,many manufacturers turn to online retail market by channel encroachment.The market sales channel which originally belonged to retailer was encroached by manufacturer.On the other hand,more and more traditional retailers are starting to build dual channel mode,which is the combination of offline and online channels.Most of the current researches independently study the manufacturer’s channel encroachment and retailer’s channel strategy choice,but seldom consider the relationship between manufacturer’s channel encroachment and retailer’s channel choice.Therefore,this paper studies the impact of retailer’s dual channel strategy on manufacturer’s channel encroachment from the following three aspects.Firstly,this chapter studies the impact of retailer’s dual channel strategy on manufacturer’s channel encroachment in the case of online and offline channel uniform pricing.This paper constructs four channel strategies based on the different strategy choices of manufacturer and retailer,and compares how manufacturer chooses channel encroachment when retailer adopts single-channel strategy and dual-channel strategy,and then discusses the impact of retailer’ channel strategy on manufacturer’ channel encroachment strategy.The results show that the retailer’s channel strategy will affect manufacturer’ channel encroachment strategy.When the manufacturer’s direct selling cost is small or large,no matter what channel strategy the retailer adopts,the manufacturer’s channel encroachment strategy will not be affected.When the cost of channel encroachment is moderate,if the retailer adopts single-channel strategy,the manufacturer will choose to encroach the channel,otherwise,the manufacturer will give up encroaching the channel.Secondly,the impact of retailer’s dual-channel strategy on manufacturer’s channel encroachment is studied based on the cross-shareholding between manufacturer and retailer.The model of manufacturer chooses to encroach the channel and doesn’t encroach the channel is constructed respectively under retailer adopting single channel strategy and dual channel strategy,then comparing and analyzing the optimal channel encroachment strategy selection of manufacturer under different situations.The results show that retailer and manufacturer’cross-shareholdings will weaken the motivation of manufacturer to encroach the channel,retailer adopting dual-channel strategy will also induce manufacturer to give up encroaching the channel under certain conditions.What’s more,if the retailer’s shareholding in manufacturer increases gradually,the retailer’s profit after cross-shareholding will increase gradually and the manufacturer’s profit after cross-shareholding will decrease gradually.However,with the gradually increase of the manufacturer’s shareholding in the retailer,the profits obtained by both supply chain members after cross-shareholding shows the opposite change.Finally,this chapter studies the impact of retailer’s dual channel strategy on manufacturer’s channel encroachment when considering consumer perception differences.Building up four different channel strategies,and getting the optimal solution by reverse induction.Comparing the profits of manufacturer or retailer under different situations,then getting the equilibrium strategies.By extension analysis,discussed the impact of manufacturer and retailer choosing channel strategy successively on equilibrium strategy.The results show that the maximum acceptable direct marketing cost of channel encroachment increases with the decrease of consumer perception difference,which means that manufacturers are more willing to encroach the channel.When direct selling cost and consumer perception difference are at medium level,retailer adopts dual channel strategy will weaken the manufacturer’s intention of channel encroachment.When the retailer chooses dual channels but the manufacturer chooses to give up encroaching the channel,the profits of both retailer and manufacturer may increase.When the retailer and the manufacturer establish the online channel at the same time,the profits of both members are not always adverse,retailer and manufacturer can achieve a win-win situation under certain conditions.