Affiliation:
1. School of Management Hangzhou Dianzi University Hangzhou China
2. Glorious Sun School of Business and Management Donghua University Shanghai China
Abstract
AbstractWe examine a dual‐tier supply chain where the brand entrusts its production to competitive and non‐competitive manufacturers. We explore three online sales models used by the brand and manufacturers: traditional, pre‐sale, and hybrid. Manufacturers serve the brand while competing with their own products. Considering consumer valuations across models, we create Stackelberg and Nash models. We analyze consumer valuation impact and the interplay of sales models and structural configurations on operational efficiency. We find that with competitive manufacturers' lower pricing, retailers tend to outsource to them. Retailers can choose sales models based on consumer evaluations, and higher dominance enhances profitability.
Funder
National Social Science Fund of China
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management