Research on Manufacturer's Cooperation and Market Expansion Strategies Considering Brand Spillover and Technology Diffusion
Technology and brand strength reflect the core competitiveness of an enterprise.On one hand,due to the spillover effect,the brand reputation of a strong enterprise can be passively transferred to its com-petitors,causing significant competitive threat to itself.On the other hand,a strong enterprise may attempt to mitigate competition through technology diffusion,seeking a win-win cooperation situation with poten-tial competitors.Based on this,this paper investigates the market expansion strategy of a manufacturer in a competitive and cooperative(co-opetition)market under the influence of brand spillover and technology diffusion.A Stackelberg game model was constructed to analyze the dynamic relationship between two competing C2M manufacturing enterprises,with the stronger one as the leader and the weaker one as the follower.The optimal decisions of the enterprises in the competitive and co-opetition scenarios were compared to provide effective theoretical guidance for the market expansion strategy for enterprises engaged in market competi-tion.The research finds that in the absence of technology diffusion,the stronger enterprise dislikes brand spill-over as it may harm its interests.The weaker enterprise does not always benefit from brand spillover,and the only scenario they do is when product substitutability is high.As competition intensifies,the weaker enter-prise will gradually enter a state of"invasion threat",which may ultimately lead to its exit from the market.To avoid this unfavorable situation,the stronger enterprise will allow technology diffusion to the weaker en-terprise.In such light,the impact of technology diffusion on the manufacturers'market expansion strategies is further analyzed,which found that when the stronger enterprise chooses to engage in technology diffusion,its weaker counterpart always prefers to receive the technology diffusion while also adopting brand spillover.The attitude of the stronger enterprise depends on the specific conditions of brand spillover and technology diffusion.When product substitutability is moderate,the shared benefits obtained by the stronger enterprise can offset the adverse effects of brand spillover,making brand spillover acceptable to it.At this point,both en-terprises can reach a"win-win"equilibrium and become friendly competitors.The conclusion of the paper provides insights for the real-world competition and cooperation decision-making of enterprises:stronger enterprises should pay attention to changes in the market environment and recognize that technology diffusion is an effective strategy to ease competition and create new market oppor-tunities;weaker enterprises need to carefully consider their development paths and seek favorable coopera-tion opportunities;the government and relevant departments should create a fair and just innovation environ-ment to promote equal competition and cooperation among enterprises.This research provides new theoreti-cal perspective and practical guidance for the field of supply chain management.
supply chain managementbrand spillovertechnology diffusioncompetition and coopera-tionStackelberg model
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