TITLE:
Brand Franchise Supply Chain Partnership Based on Online and Offline Integrating Strategy
AUTHORS:
Rong Wang
KEYWORDS:
Brand Franchise Supply Chain; Transfer Payment Contract; Online-Offline Integrating Strategy; VMI Policy; Scale Economic Effect
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.3 No.4,
July
26,
2013
ABSTRACT:
Taking advantage of online shopping
affecting major parameters of corporate
business including customer experience, customer word-of-mouth
diffusion and customer complaints sharing, price
elastic of consumer demand, and consumer brand
loyalty, this paper focuses on the role of brand franchise supply chain
partnership in the online and offline integrating environment. The findings suggest that the transfer
payment shall be the critical contract clause to coordinate the brand franchise
supply chain partnership to implement Pareto optimal strategy on VMI policy. Moreover, the optimal transfer
payment has a strong positive relativity with the complementary of the
online-offline shopping and VMI scale economic effect, whereas negative
relativity with the substitutability of the online-offline shopping and VMI
holding cost. The more VMI scale economic effect enhances, the larger
online-offline integrating shopping market shares and the more system revenue
shall be obtained in the brand franchise supply chain whereas taking advantage
of the less transfer payment. The more VMI holding cost decreases, the larger
online-offline integrating shopping market shares and the more system revenue
shall be obtained in the brand franchise supply chain whereas taking advantage
of the less transfer payment.