This paper analyzes the Quantity-Flexibility (QF) contract, under which the buyer provides to the supplier information about expected future orders for the predetermined horizon and the supplier, in return, provides the buyer with the flexibility to adjust future orders later. Under this scheme, the flexibility profile of the contract can be perceived by the buyer as a form of customer service, by which the supplier commits to fulfil the buyer's maximum likely order at the cost of the supplier's inventory risk. The simulation results show that the benefit of the contract to either party clearly depends on the flexibility profile of the contract. For the supplier, there exists a trade-off between customer service level and inventory risk associated with the flexibility profile. However, for the buyer, the flexibility demonstrates a principle of diminishing returns, which is contrary to the general notion that buyers always prefer more order quantity flexibility. In fact, greater flexibility does not always translate into better customer service to buyers.

No abstract

We present a unified explanation of the internationalization strategies of major mobile network operators (MNOs). We have developed a framework that analyzes the strategies of major international MNOs in terms of the relationship between their degree of involvement in international business operations and the degree of equity participation. The results show a positive association between these two dimensions as expected, but they also reveal some exceptional cases in which certain MNOs are actively involved in the business operations of other foreign MNOs, even with minor (or zero) equity investments. In this paper, we argue that the strategic actions of the major MNOs which are the largest shareholders of foreign MNOs are in an equilibrium status because these major MNOs derive maximum benefit from full or considerable management control and active involvement. Finally, we predict that latecomers (MNOs who are just about to enter foreign telecommunications markets) may adopt an incremental investment approach because most developed markets and deregulated emerging markets with growth potential are already preempted by major MNOs. Therefore, the window of opportunity for internationalization in those markets is currently small.

This paper presents an optimal Pay-Per-View (PPV) price decision model for maximizing an Internet based Video-On-Demand (VOD) service provider's revenues, taking into account the service provider's service quality and consumers' willingness to pay. The model considers multi-class VOD services with differentiated qualities and determines the optimal price for each class through simulations. The simulation results show that as long as all the multi-class services have non-zero demands, the differential pricing system provides more revenues than the uniform pricing system that prevails in the current VOD market. To test the robustness of the model, simulations were performed with gradually increasing customer demands or system workloads. The simulation results show that even with substantial customer demands or system workloads, self-adjustment mechanism of the model works and the system reaches a stable status in equilibrium. This paper also presents a numerical example of guaranteeing Quality-of-Service (QoS) through pricing strategies as a short-term measure.

No abstract