Study on Business Extension Strategy of a Distributor Considering Customer Risk

摘要

The intense competition among steel distributors with non-business extension strategy brings steel distributors the customer risk, which includes customer relationship risk and financial risk. How to gain cost advantage and value advantage of commodity steels, by the use of business extension strategy has been analyzed. By the application of Game Model, the impact of business strategy on payoff of the commodity steel distributor and the customer is given during the long-term cooperation. The research result shows that the business extension strategy of commodity steel distributors can effectively avoid customer risk.