Research On Competitive Strategy Of Franchising Supply Chain Considering CSR

Franchise,as a business model,is widely used in apparel,fast-moving consumer goods and other industries.In the franchising supply chain,the brand owner and franchisee sell the same products to meet consumer needs.In order to attract consumers and occupy a larger market share,both sides often engage in vicious price competition,which will eventually lead to low product quality and other problems,which not only damages the interests of consumers but also affects the corporate image and long-term sustainable development.As our government at all levels has introduced the decision and guidelines on the Corporate Social Responsibility(CSR)one after another,each industry in our country pays more and more attention to the implementation of CSR.CSR mainly refers to the idea that enterprises not only pay attention to their economic interests,but also their responsibilities to consumers,employees,business partners and ecological environment,so as to achieve sustainable development of enterprises.Franchise enterprises have also begun to turn their attention to CSR,expecting to build a good corporate image,attract consumers and gain advantages in market competition through CSR performance.In order to understand the influence law of CSR on the pricing decision and competitive strategy of franchising enterprises,this paper builds a franchise supply chain decision model considering CSR,analyzes the influence law of CSR on the pricing,market demand and profit of franchise supply chain,and conducts an application study with N enterprise as the case to provide guidance and reference for direct and franchisee to develop competitive strategies.This paper has analyzed the characteristics and research status of CSR and franchise supply chain,summarized the consumer utility theory,CSR quantitative theory,Hotelling theory,CSR spillover effect theory,etc.On this basis,this paper mainly carries out research from the following aspects:1.Based on the franchise supply chain composed of direct marketers,franchisees and consumers,considering whether CSR is implemented or not,combined with Hotelling model to construct consumer utility function and market demand function,and respectively construct and solve the profit maximization function of direct marketers and franchisees.Based on the solution results,the price,market demand and member profit in the equilibrium state under the two situations are compared and analyzed,and the sensitivity changes of pricing,demand and profit to consumer CSR preference,wholesale price and consumer unit acquisition cost are compared and analyzed.It is found that CSR can help direct marketing more effectively suppress the price competition strategy of franchisees and increase its own market demand.2.On the basis of the above,considering the spillover effect of CSR,we construct and solve the decision-making model of franchise supply chain,discuss the influence law of CSR spillover factor on equilibrium pricing,market demand and profit,and analyze the change of sensitivity of equilibrium decision-making to consumer unit acquisition cost,production cost,CSR spillover coefficient and other influencing factors.It is found that enhanced spillover effect can weaken the demand growth advantage obtained by direct marketing companies when implementing CSR,help franchisees restrain direct marketing companies,and effectively prevent direct marketing companies from monopolizing the market.3.Taking N enterprise as an example,based on the above theoretical research model,analyze its current situation and problems,and carry out application research.The study found that with the improvement of consumers’ CSR preference,N company realized effective control over pricing and market demand through CSR performance,and improved the effectiveness of other factors in price regulation.At the same time,this paper puts forward management suggestions for N company in terms of implementing flexible pricing,strengthening cost control,increasing CSR publicity,and considering relocation,so as to enhance the effect of CSR in future corporate operations.The research in this paper provides the brand owner N with new strategies on how to reasonably price,attract consumers and enhance competitive advantages when implementing CSR,and also further improves N’s understanding of the importance of fulfilling CSR.For the franchise industry,the research in this paper can also help franchise participants grasp the influence of CSR on pricing and market demand,carry out reasonable and orderly competition,and achieve sustainable development.