Supplier's encroachment strategies driven by the retailer's promotion effort
This paper focuses on a supply chain consisting of one supplier and one retailer.It discusses two situations:The supplier having encroachment capability and the supplier not having encroachment capability.A price competition model between the supplier and the retailer is constructed.Then,the supplier's encroach-ment strategies,driven by the retailer's promotional efforts,are analyzed.The results show that the fixed cost for the supplier to obtain encroachment capability greatly influences the supplier's encroachment strategies.The supplier with encroachment capability may promise the retailer not to encroach under certain conditions.The supplier's encroachment capability affects the retailer's promotion strategies,and promotion is not always beneficial to the retailer.The interval in which the retailer can benefit from the promotion increases with the promotion efficiency,and higher promotion efficiency leads to higher profit for the retailer.
supply chainsupplier encroachmentpromotion effortthreat of direct selling
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