Cannibalization and competition effects on a manufacturer's retail channel strategies: Implications on an omni-channel business model

摘要

This paper analyzes two effects caused by "channel conflict", which occurs when firms newly add a direct online channel via the Internet or a mobile device. The first is an "intra-cannibalization effect" between the firms' existing retail channel and the new online channel, and the second is the "inter-competition effect" between manufacturers and retailers in the supply chain. In particular, this paper investigates a manufacturer's retailing channel strategy considering the relative market power between a manufacturer and a retailer in the supply chain, which has been rarely considered in previous studies.