Manufacturer's agency channel encroachment on an online retail platform.

ABSTRACT: Channel encroachment intensifies competition among channels and changes the relationships within the supply chain. This study examines the manufacturer's agency channel encroachment decision and its impact when it has already operated a platform reselling channel and a retailer channel on the platform. Equilibrium results reveal that the manufacturer's agency channel encroachment triggers a competition effect, leading to a reduction in market demand for both the platform's reselling channel and the retailer's channel, as a larger share of the market shifts toward the manufacturer's agency channel. To compensate for the losses in sales experienced by the platform and retailer, the manufacturer lowers the wholesale price. The manufacturer consistently benefits from channel encroachment and a

SUBMITTER: Guo M 

PROVIDER: S-EPMC11585636 | biostudies-literature | 2024 Nov

REPOSITORIES: biostudies-literature