Research On Dual-channel Supply Chain Mode Choosing And Pricing Strategy

The role E-commerce is playing in the economy of the modern world is becoming moreand more important. It’s not only gradually changing the customers’consumption concept andbehavior, but also making deep impact on the manufacturers and retailers. Some manufacturersand retailers are building their online direct channel under the E-commerce environment, whichshapes the dual-channel supply chain together with the traditional hypostatic channel. Based onthe domestic E-commerce development status, this research studies the pricing strategy andchannel selection of the manufacturers and retailers in the dual-channel supply chain.Firstly, four kinds of mathematical model are built, respectively considering the followingcases:⑴only one traditional channel;⑵only the retailer builds direct channel;⑶only themanufacturer builds direct channel;⑷both the manufacturer and the retailer build directchannel. The Stackelberg game is used in the model, and the expressions of the manufacturer’sand the retailer’s price, sales volume and profit are finally get.Then, using the result of the mathematical model, we analyze the manufacturer’s and theretailer’s price, sales volume and profit from different independent perspectives ofmanufacturer and retailer, and get the supply chain mode choosing strategy and pricing strategyin the following cases:⑴only the retailer builds direct channel;⑵the manufacturer buildsdirect channel after the retailer;⑶only the manufacturer builds direct channel;⑷theretailer builds direct channel after the manufacturer.At last, we use a mathematical example to solve the problems. With the example, thispaper research the channel selection and pricing strategies of both the manufacturer and theretailer in the specific environment. Thus this research shows the game analysis and the decisionselecting process more visualized.This research has some guiding significance for the E-commerce development of themanufacturers and retailers. Meanwhile, the new mathematical model built in this researchperfects the theory of dual-channel supply chain management.