More and more online manufacturers collaborate with offline retailers who provide retail services to showcase products in offline retailers’ stores and feature the stores as physical showrooms. Since offline retailers may be noncompeting or competing depending on the product they sell, we investigate two collaboration strategies. Our results show that product competition causes the decreased demand that is realized through physical showroom (negative competition effect) and the increased demand to buy online directly (positive spillover effect) for the online manufacturer. When the positive spillover effect dominates the negative competition effect, the online manufacturer prefers to partner with the competing retailer and strategically sets a high price. Interestingly, the online manufacturer's willingness to partner with the competing retailer may increase with competing product value. Besides, the online manufacturer may benefit from the increased value of the competing product and the increased commission that is paid to the retailer under product competition.
This paper considers an e‐tailing supply chain for fresh produce (E‐FSC) composed of a supplier investing in freshness‐keeping effort and an e‐retailer providing value‐added service. We study the e‐retailer's information sharing strategy with supplier encroachment. First, we discuss the supplier's encroachment strategy without or with information sharing and indicate that the e‐retailer may profit more from encroachment. Second, we explore the e‐retailer's information sharing strategy under two scenarios. Under the independent scenario, the e‐retailer may share information when the freshness sensitivity is comparatively high, which cannot affect the supplier's encroachment strategy. Under the interactive scenario, the e‐retailer influences the supplier's encroachment strategy through an information sharing strategy. The e‐retailer may share (withhold) information to induce (deter) encroachment when the competition intensity is comparatively low or high (moderate). Finally, we discuss the influence of the entry cost on E‐FSC members’ profits, which finds that increasing entry cost may improve the supplier's profit.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.