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...
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MDPI AG
2025-05-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/13/10/1591 |
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| author | Houru Hu Mingxia Li Sifan Xiao Zhichao Zhang |
| author_facet | Houru Hu Mingxia Li Sifan Xiao Zhichao Zhang |
| author_sort | Houru Hu |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-7f1ec7cb1aff4ff7b25e9769f17d3de7 |
| institution | Kabale University |
| issn | 2227-7390 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj-art-7f1ec7cb1aff4ff7b25e9769f17d3de72025-08-20T03:47:57ZengMDPI AGMathematics2227-73902025-05-011310159110.3390/math13101591The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of GreeHouru Hu0Mingxia Li1Sifan Xiao2Zhichao Zhang3College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, ChinaSchool of Economics and Management, Yanshan University, Qinhuangdao 066000, ChinaSchool of Economics and Management, Yanshan University, Qinhuangdao 066000, ChinaCollege of Economics and Management, Anhui Polytechnic University, Wuhu 241000, ChinaThis 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.https://www.mdpi.com/2227-7390/13/10/1591platform schemesagency sellinggame theorytraditional distributorsupply chain management |
| spellingShingle | Houru Hu Mingxia Li Sifan Xiao Zhichao Zhang The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree Mathematics platform schemes agency selling game theory traditional distributor supply chain management |
| title | The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree |
| title_full | The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree |
| title_fullStr | The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree |
| title_full_unstemmed | The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree |
| title_short | The Strategic Adoption of Platform Schemes and Its Impacts on Traditional Distributors: A Case Study of Gree |
| title_sort | strategic adoption of platform schemes and its impacts on traditional distributors a case study of gree |
| topic | platform schemes agency selling game theory traditional distributor supply chain management |
| url | https://www.mdpi.com/2227-7390/13/10/1591 |
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