Competition in dual-channel supply chains: The manufacturers' channel selection

Abstract Innovative selling channels have brought about opportunities as well challenges for upstream manufacturers. The past few years witnessed both the success and failure of manufacturers with different channel strategies. To explore rationale strategies in various contexts, we develop a model to analyze manufacturer's selection decision among three strategies, i.e., direct-channel strategy, retail-channel dual-channel strategy consisting direct retail channels. rests on differentiation terms consumers’ preferences operating costs Specifically, incorporate action competitor track down its influence focal preference. Our research clarifies role competition market offers insights into competitive nature business real life. Results show that preference depends not only channels’ but also competitor's strategy. We find symmetric can adopt asymmetric Nash equilibria there are situations where no equilibrium exists. characterize game based exogenous parameters model.