Abstract
With the advent of the Internet, the tendency of manufacturers to sell products directly through their own websites result in conflicts between existing distribution companies. In addition, retail companies also sell products directly through websites responses to manufacturers’ direct selling. In the case of recent retail companies, a delivery strategy in the form of consumers ordering products online and directly picking-up products at offline stores has emerged. In addition, when consumers order products manufacturers’ online websites, omni-channels have become possible, allowing them to pick up products directly at retailers' stores. Manufacturers and retail companies have a strategy of selling through direct online channels and an omni-channel strategy in which the aspect of multiple channels selling through existing offline channels evolves into a form of cooperation between the two channels. Thus, case studies and theoretical analysis are needed because it can lead to a new type of channel conflict in a supply chain network. This study aims to provide some business implications on the omni-channel strategy of manufacturers according to the level of bargaining power between manufacturers and retail companies in a supply chain network. This paper discusses how a manufacturer's existing distribution strategy can differ depending on the size of its market dominance (or the number of its own retail brances) compared to retail companies. For example, when a retail company is weak, it can take an omnichannel strategy to respond to a manufacturer strategy, and when a manufacturer is relatively weak, it is possible to withdraw the existing distribution network and focuse on omnichannel strategy.
Translated title of the contribution | Omnichannel Strategies of a Manufacturer in a Supply Chain: Case Study of Retailers’ Strategic Behaviors |
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Original language | Korean |
Pages (from-to) | 59-69 |
Number of pages | 11 |
Journal | 상품학연구 |
Volume | 39 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2021 |