Study Of The Competition Of Location And Pricing Between Two Supply Chains Each Consisting Of One Manufacture And One Retailer

With the continuous development of economic globalization and information technology,the enterprise has outsourced their non-profit and non-core business to third parties for surviving in the fiercely competitive market,only retain the core business and make up the supply chain(SC)with other related enterprises,thereby reducing the business cost and risk to adapt to the changing market.In the era of SC competition,when the SC enterprise are confronted with the problem of product homogeneity,how should they reflect their product differentiation for obtain a certain market share and occupy a certain market position?The Hotelling model as a classic theory to study the horizontal differentiation of products,not only effectively solves this problem,but also provides a certain scientific basis for SC managers to formulate business strategies.In real life,companies not only need to face competition in the supply chain,but also face the influence of consumer purchasing behavior.Therefore,based on the Hotelling model of"linear market",this paper studies the location and pricing competition between the two SCs under the different transportation cost,which consist of one manufacturer and one retailer,and further comprehensively considers the influence of consumer purchase behavior on SC competition.The specific research contents are as follows:(1)The third chapter studies the competition of location and pricing between two SCs on the"linear market",and build a competitive equilibrium model for two SCs,which are centralized SCs(II mode),decentralized SCs(DD mode),or one decentralized SC and one centralized SC(DI mode).The existence condition of equilibrium solutions and the equilibrium solution are obtained.The research results show that the pricing and profit of two SCs in the DI mode are lower than those in DD mode,but are more than those in II model.So,the centralized decision mode is not the dominant strategy for profit maximization.(2)For many shopping malls provide the price discount strategy to consumer,such as the Outlets and the Sam's Club,the fourth chapter studies whether the price discount strategy will affect the decision of location and pricing.The research results show that product pricing p_i decreases with its own ?_i(0??_i?1)increase,that is,the larger the discount coefficient(small discount),the corresponding product will be lower price,the smaller the discount coefficient(large discount),the corresponding product pricing will be higher;The location decision of the SCs is not affected by the price strategy and the site selection at both ends of the market.(3)The fifth chapter considers the consumer have brand preference for products in the two SCs competition models,in which preferenceqobeys the uniform distribution of[d,e],and studies the problem of location and pricing of two SCs.The research results show that the higher the consumer's brand preference,the higher the price of the product,the profit of the SCs will be also increased.,and the market share of the SCs will be affected.Under the goal of maximizing SC profits,the SCs will be in the market center.The main research contents of this paper have all come to the same conclusion:Under the maximizing of SCs profits,centralized control is not a dominant strategy;At this time,the market share of the SC under centralized control is the largest,but the profit of the SC is the least.Obviously,the SCs is more competitive under centralized control,but it is also the most efficient.For the purpose of obtaining more market share,the SC enterprises have to sacrifice part of the profit,but the social welfare is the biggest under the centralized control of the SC.This has certain scientific basis and reference for the SC managers to formulate the business strategy.