Pricing strategy for supply chain considering horizontal competition under C2B mode
- XIAO Di, JIN Wen-wen
JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE). 2018, 53(5):
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We studies a supply chain that consists of one supplier, one E-business firm under C2B mode and one traditional firm existing horizontal price competition, and analyzes the equilibrium in four different scenarios including centralized decision, decentralized decision, C2B dominant decision and traditional firm dominant decision. The influence of some important parameters, such as cross-price coefficients, customize product effort coefficients, etc., on the customize product effort of E-business firm under C2B mode, retail price and supply chain profit is discussed. It shows that with the improvement of cross-price coefficients, the E-business firm under C2B mode will enhance effort to customize product to get higher profits. Furthermore, the E-business firm under C2B mode should not compete with the traditional firm as a leader, but as a follower to use its advantage of personalized customization to gain more profits.