Research On New Market Entry Channel Strategy

In the dynamic and increasingly complex business environment at home and abroad,more and more enterprises are constantly seeking innovation and change to adapt the new market.Market entry has become an important step in the development of new strategies for enterprises,and huge opportunities it contains has become a breakthrough point for domestic and foreign enterprises to improve their supply chain value.Many enterprises complete the entry of new market through their own technology update,productivity improvement,channel optimization,rich product diversity and geographical expansion.Among them,accurate channel strategy,as a way to achieve market entry,is a key factor for the survival and development of enterprises and the guarantee of market prosperity and the interests of the whole industry.In addition,according to the business practice observation of enterprises entering the new market,it is found that channel structure,contract type and promotion methods may interact with the market entry channel strategy.In view of this,this thesis discusses the issues between relevant factors and strategies in the context of supply chain.Specifically,it includes the new market entry channel strategy based on the original market channel structure,considering the interaction between contract type and market entry channel strategy,the interaction between promotion methods and new market entry channel strategy.By constructing the game theory model,with the reverse induction method and the optimal condition equilibrium solution,we did the results quantitative analysis and case analysis.It provides decision support and theoretical basis for relevant manufacturers and retailers in the selection process of new market entry strategy,which also makes a reasonable theoretical description and reference for numbers of domestic and foreign new market entry enterprises.This thesis considers that the manufacturer and the retailer achieve market entry through direct channel,indirect channel and dual channel.First,consider the original channel structure in the market,based on the Chinese household appliances manufacturers(haier,gree,etc.),the entity household appliance retailers,gome,suning,etc.),with a big electronics retailer(taobao,jingdong,etc.),the traditional household appliance products and related intelligent household products to enter the rural market observation practice,build the original market direct channel,indirect channel and dual channel three game theory model of channel structure,explore the channel strategy to enter the new market.The results show that:(1)when the manufacturer adopts the retail channel or dual channel structure in the original market,the joint entry into the new market is the optimal market entry strategy for both the manufacturer and the retailer;(2)When the manufacturer adopts direct channel in the original market,the retailer still prefers to enter the new market through dual channel with the manufacturer;(3)When the scale of the new market is small and the channel competition is not fierce,the manufacturer prefers the retailer to enter the new market through the indirect channel alone.On the contrary,the manufacturer still prefers to enter the new market through the dual channel together.Secondly,the thesis explores the interaction between the wholesale price contract and the revenue sharing contract with the market entry channel strategy.More and more enterprises take the live e-commerce platform,take goods platform and a series of platform as its new market entry and new product release way.Revenue sharing contract is widely used in such a platform economy,compare the difference with wholesale price contract,it build a game model to analysis the different contracts.The results show that:(1)the signing of different types of contracts will have different degrees of influence on the choice of market entry channel strategy for different enterprises.Retailers’ preference under revenue-sharing contracts is the same as wholesale price contracts,which allow them to enter new markets jointly with producers through dual channels.Under the revenue-sharing contract,the manufacturer prefers the retailer to enter the new market alone through indirect channels,while under the wholesale price contract,the manufacturer prefers both parties to enter the new market jointly through dual channels.(2)When the manufacturer enters the new market through direct channels alone,the retailer enters the new market through indirect channels alone,and the two parties enter the new market through dual channels jointly,the manufacturer prefers to sign the revenue-sharing contract.The retailer prefer to sign a revenue-sharing contract when the revenue-sharing ratio is high.As a result,more and more enterprises choose to sign revenue sharing contracts in the process of entering new markets.(3)In the process of entering a new market,enterprises will often incur losses if they sign contracts different from those in the original market.Finally,we analyzes how different promotion methods affect the market entry strategies of enterprises.Based on the practical observation of household appliance products,fast-fashion consumer goods and new energy vehicles in large retail stores,the game model under different strategy combinations is built by considering two ways of promotion services provided by the manufacturer or the retailer.The results show that :(1)Considering the use of different promotion methods and the interaction between signing different contracts,the enterprise will have an impact on the choice of market entry channel strategy.Under the revenue-sharing contract that the retailer provides promotion service,the manufacturer prefers to enter the new market together with the retailer through dual channels,and the retailer prefers to enter the new market alone.When considering the promotion service provided by the manufacturer,the retailer would prefer to enter the new market alone in the case of low revenue sharing ratio,while the manufacturer would still prefer to enter the new market together.(2)Considering the same market entry channel strategy,the adoption of different promotion methods will affect the type of contract signed by enterprises.Manufacturers prefer wholesale price contracts when retailers provide promotional services and enter new markets through direct channels,while other scenarios prefer revenue sharing contracts.Retailers prefer wholesale price contracts when the manufacturer provides promotion services,when the manufacturer enters the new market alone or when both parties enter the new market together,and in other scenarios,they prefer the revenue sharing contract.(3)Under the wholesale price contract,when the retailer enters a new market separately and both parties enter a new market together,the retailer prefers to provide promotion services,especially by itself.Manufacturers prefer to offer promotional services when retailers enter a new market alone through indirect channels.Under the revenue-sharing contract,the retailer,as the leader of the contract,is willing to invest more costs in promotion to increase the market demand.By entering new markets,the retailer can occupy a larger market share to obtain greater benefits,so it also prefers to provide promotion services by the retailer.Manufacturers will enjoy the benefits of spillover effect in this process,so they also prefer to provide promotion services by retailers.In a word,based on the comprehensive consideration,the initial practical observations of enterprises show that channel structure has an impact on the channel strategy of market entry.However,the emergence of diversified contract types and the signing of different types of contracts also began to influence the market entry strategy.When enterprises are in more and more complex business environment,the way of promotion has become an important factor to determine the market strategy of enterprises.Therefore,this paper innovatively analyzes the interaction and mechanism of market entry channel strategy from three perspectives,namely channel structure,contract type and promotion method,with the method of interlocking and progressive layer by layer.By constructing the game theory model and combining the research method of quantitative analysis with the practice of enterprises,this paper innovatively explores the market entry channel strategy.This thesis provides an incremental contribution for enterprises to achieve market entry through channel strategy selection,to open up new markets,to adapt to the increasingly complex market environment and to create higher value,and enriches the relevant research on market entry and channel management.At the same time,it provides theoretical proof for the enterprise business practice of realizing innovative development and value enhancement through market entry,which has certain guiding significance,obtains some conclusions and viewpoints with practical reference and academic value.