Managing Cost Reduction Efforts in Supplier Encroachment

The extant literature has indicated that upstream supplier encroachment on the incumbent retailer could be beneficial to supplier, retailer, and entire industry, when supplier’s marketing disadvantage satisfies specific conditions. This study extends previous investigations about circumstance where is capable of managing mitigating her disadvantage, which further intensifies retail competition provides new managerial implications encroachment. We find with cost reduction efforts does not necessarily hurt industry but always benefit consumers. Compared without effort, industry. Between efforts, consumers prefer latter former, respectively. Our findings provide meaningful insights manage in supply chain