The Research On Longitudinal Behavior Of Multinational Retailers Based On Labor Division Theory

With advanced management experience and perfect logistics system, multinational retailers expanding its market share, strengthen brand awareness, be in market dominant position in the supply chain. Profits prompted multinational retailers in China implements the longitudinal behavior, the channel, an exclusive deal and resale price maintenance and other means to achieve the goal of profit maximization and cost minimization. In industrial chain, the multinational retailers use longitudinal behavior exploitation upstream manufacturers, leading to small and medium-sized producers can’t afford the economic squeeze and intense competitive pressure finally withdrew from the industrial chain. Longitudinal behavior is not only harmful to producers, but also a negative impact on retail. It strengthened the market dominance of the multinational retailers, challenge to domestic retailers, grab market share, profits from the domestic retailers, resulting in small and medium-sized retailers out of business by competitive disadvantage.Firstly in this article, through the perspective of division of labor longitudinal behavior mechanism of multinational retailers, discusses the development of the theory of division of labor, determine the intermediate organizations for multinational retailers, and from the market and technology are analyzed. Technology static and market static contributed to the generation of intermediate organization. Technology dynamic and market dynamic promote the development of intermediate organization. Secondly analysis of characterization of the multinational retailers expand in China, including the performance, characteristics, and the status quo. Using extrusion model and multiple regression model to analysis mechanism and the effects of the longitudinal behavior, and puts forward some ideas of regulation. Finally make a summary and inspiration, and points out that the multinational retailers longitudinal behavior damage manufacturers and retailers, bring adverse effect to the development of China’s retail industry.