The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree
This article is motivated by the challenge of the increasing power of e-commerce compared to traditional commerce. An online retail platform can provide both agency selling and reselling schemes, while the supplier can adopt one scheme or both. For a case study of Gree, we formulate four cases based...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-05-01
|
| Series: | Mathematics |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7390/13/10/1591 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This article is motivated by the challenge of the increasing power of e-commerce compared to traditional commerce. An online retail platform can provide both agency selling and reselling schemes, while the supplier can adopt one scheme or both. For a case study of Gree, we formulate four cases based on the channel structures to investigate the adoption strategies of platform schemes and their impacts on a traditional distributor, Jinghai. Firstly, we discuss the impacts of the slotting fee, the revenue-sharing proportion earned by the supplier, and the market competition intensity on the profits and decisions of members. A more intense market and a higher revenue-sharing proportion for the supplier will lead to a lower price in the traditional distribution channel. Secondly, we study how a supplier should employ the platform schemes with a traditional distributor. Particularly, the extremely low extra market demand driven by the online platform and the sufficiently low market intensity may not lead to a motivation for suppliers to adopt the agency scheme. Finally, Gree’s introduction of an agency scheme does not always spell disaster for traditional distributors, and it may not be such a bad thing for Jinghai to agree to Gree adding the online reselling scheme. |
|---|---|
| ISSN: | 2227-7390 |