Journal of Northeastern University Natural Science ›› 2019, Vol. 40 ›› Issue (3): 441-446.DOI: 10.12068/j.issn.1005-3026.2019.03.026

• Management Science • Previous Articles     Next Articles

Design and Optimization of Competitive Product Channel Structure Based on Revenue Sharing Contract

ZHANG Shu-hua 1,2, DU Xiao-jun 1, ZHOU Bao-gang 3   

  1. 1. School of Business Administration, Northeastern University, Shenyang 110169, China; 2. Liaoning Provincial College of Communication, Shenyang 110122, China; 3. School of Management, Bohai University, Jinzhou 121001, China.
  • Received:2018-01-29 Revised:2018-01-29 Online:2019-03-15 Published:2019-03-08
  • Contact: ZHANG Shu-hua
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Abstract: Three types of channel structure composed of two competitive suppliers and two network platforms are designed. The channel selection strategy is analyzed based on the joint substitution rate of products and channels when the supplier and the network platform act as decision makers, respectively. After establishing the revenue sharing contract from the network platform to the supplier, the influence of the joint substitution ratio and revenue sharing ratio on the optimization of the multi-channel supply chain structure is further studied. It is found that the dominant strategy of the platform is to set up an exclusive deal with the supplier and the supplier will choose the multi-channel strategy. Therefore, in the basic channel structure there is no equilibrium solution. That all participants form an exclusive deal is a balanced strategy after the revenue sharing contract is established. The results of the study are of guiding significance to different decision-makers for channel structure selection and optimization in the multi-channel supply chain environment.

Key words: multi-channel supply chain, channel structure design, competitive product, exclusive deal, revenue sharing contract

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