Information Sharing And Service Strategy: The Study Of Mechanism With Dual Channel Supply Chain

Facing a potential entrant, an upper stream manufacturer usually adopts dual channel tokeep his prevalence position in the market. Dual channel strategy can help the manufacturerimprove the entrance barrier. The dual channel strategy also reduces the doublemarginalization which hurts the whole supply chain performance. Under some conditions, theretailer will share information with the entrant. This leads the entrant into the market. However,the manufacturer does not share information with the entrant, and prevents his retailer to shareinformation with the entrantWe then consider a dual-channel supply chain in which the down-stream retailer providessale service to customers. Our study finds that the sale service not only can expand theretailers’ profit, but also can be regarded as an effective strategy for the retailer to deal with theprofit swallowing from e-commerce channel. Under some conditions, the sale service canmake both supplier and retailer better off. The retailer can constantly increase serviceefficiency to render a high level service to customer.