Logistics Service Supply Chain Vertical Integration Decisions under Service Efficiency Competition

In the logistics sector, price competition is no longer only form of horizontal between service integrators; instead, it frequently takes efficiency among chains. Facing fierce market competition, vertical resource integration gradually becomes trend in industry integration. Using inverse derivation method and comparative analysis, this study examines relationship overall profit its chain that rival under with or without strategy. Furthermore, builds two parallel supply models based on inter-chain Nash Stackelberg game members. The results demonstrate when cost per unit fixed, greater intensity chains, more managers should tend to choose an strategy maximize their profits. More interestingly, we find optimal decision independent competitive required improve extremely high.