Study On Competition Behavior And Performance On Supply Chain Under Different Market Structure

The fierce market competition is the main difficulty that faces enterprise, theymust have a reasonable, comprehensive integration of all available resources, whichrequires the upstream, medium, downstream enterprises of supply chain to coordinateto finish the operation of the process in the global scope. Changing the competitionmode from the traditional one which focus on the competition between enterprise andenterprise to the competition between the supply chain and the supply chain aboutcore business. But the enterprise in different market environment, they need to judgethe type of market to determine how to construct supply chain and make behaviorselection to achieve competitive advantage; According to the strategic goal of theenterprise, and its matching strategy to determine the supply chain structure andmechanism design. This requires the study of participants’ decision and the balancedresult under different structure and mechanism on the supply chain to help enterpriseschoose the mode of competition. For example, when the enterprise is in differentmarket environment, and faces different market demand and different mechanism, thechoice of behavioral decision will influence the distribution of profits.In addition, with the retail era, retailers are becoming more and more importantto be the leading position in the market. Powerful retailers in some extent dominatedthe whole supply chain. The large quantities of orders from retailer are sufficient tothreat supplier, thus reducing the supplier’s wholesale cost. For example, the homeappliance retail giant Gome, Su Ning; Wal-Mart and Carrefour are well known withits important position in the supply chain. How to ensure the decision-makingsuperiority in the fierce competition is the focus of attention by the supplier and theretailer in competition.Based on the above background, this paper studies on the supply chainparticipants in different market environment and market demand situation, accordingto the structure of supply chain and different mechanisms of how the behavior choice,the different choice behavior and how to bring the results of equilibrium problems.This article build the single and two same parallel supply chains consist of onesupplier and one retailer to research each participant’s behavior decision and thebalanced result. The innovation of the paper is to consider the diversity of marketdemand, on the set of the demand function, taking linear demand function and power function as a research problem representation condition. In the existing literature, theresearch is around in the single market demand, not enough to fully explain therealistic economic conditions; In this paper, the design of mechanism is alsoperformed on the breakthrough, considered the leading supplier mechanism andretailer dominant mechanism, and comparing with the results of two kinds ofmechanism, it is the basis of the third innovation. Third innovative points are derivedfrom the analysis about the equilibrium outcome, this study found that" second-moveradvantage" has certain limitations, namely the subsequent actions of the participantson supply chain would be show the advantage in equilibrium results have certainlimitations, depending on the market function and the different market conditions.According to the research, try to provide decision-making reference for enterprises inmarket competition.