Strategic Implications of Hybrid Channel Distribution in a Competitive Market
نویسنده
چکیده
The Internet is growing in significance in B2C electronic commerce as people become more comfortable with the technology. Past analytical research on Internet commerce has mainly focused on its ability to lower consumers’ search costs. Few have looked at the implications of having the Internet as an additional channel of distribution on firms. In this paper, I adopt a game theoretic approach to analyze the impact of competition on the hybrid channel distribution problem. I also look at a differentiated product market and highlight the role of product differentiation in Internet commerce. There are three major findings: (1) direct marketing through the Internet can achieve channel coordination by reducing the retailer’s markup on goods; (2) there is spillover effect such that Internet marketing implemented by a manufacturer also benefits other manufacturers in the industry; and (3) a manufacturer implementing Internet marketing may actually want to see less product differentiation in the industry.
منابع مشابه
Creating a Competitive Advantage in Sports Businesses: The Role of Input Sources, Market Position and Creativity
The purpose of this study was to investigate the role of input sources, market position and creativity in creating a competitive advantage for sports businesses. This research was a descriptive-survey and in terms of practical purpose. The statistical population of this study consisted of managers of water sports recreational complexes in Tehran. To collect the data needed to test the hypothese...
متن کاملThe competitive advantages analysis of pharmaceutical industry strategic behaviors by game theory
Game theory is the study of mathematical models and cooperation between intelligent rational decision-makers. This paper provides a flexible model to calculate pay-off matrix based on several importance factors. This model is adapted by cooperative game and developed for some competitive advantages sections in pharmaceutical industry. An optimum solution is derived by considering Nash equilibri...
متن کاملA Non-linear Integer Bi-level Programming Model for Competitive Facility Location of Distribution Centers
The facility location problem is a strategic decision-making for a supply chain, which determines the profitability and sustainability of its components. This paper deals with a scenario where two supply chains, consisting of a producer, a number of distribution centers and several retailers provided with similar products, compete to maintain their market shares by opening new distribution cent...
متن کاملDesigning a Blue Ocean Strategy Model among Market Leaders in the Food Industry Using the Delphi Method
Blue Ocean Strategy with Innovation in the field of strategy offers a set of specific tools and approaches to create value. Therefore, it is important to apply this strategy among market leaders who use a value creation strategy to maintain and maintain competitive advantage. The purpose of this paper is to design a Blue Ocean strategy model among market leaders in the food industry. This study...
متن کاملImpact of Participants’ Market Power and Transmission Constraints on GenCos’ Nash Equilibrium Point
Unlike perfect competitive markets, in oligopoly electricity markets due to strategic producers and transmission constraints GenCos may increase their own profit through strategic biddings. This paper investigates the problem of developing optimal bidding strategies of GenCos considering participants’ market power and transmission constraints. The problem is modeled as a bi-level optimizati...
متن کامل