Partner Selection Strategy Based on Product Differentiation for a Proprietary Component Supplier
Date Issued
2014
Date
2014
Author(s)
Yeh, Chiung-Wen
Abstract
From the perspective of the proprietary component suppliers, with the patents or the intellectual property rights, the proprietary component suppliers usually have competitive strengths, and have the chance to build up the ingredient brands. Strong brand name is usually seemed as high quality and competitive market power, and the proprietary component supplier with strong brand name would have the decision power for profit sharing and supply chain structure.
There are two downstream manufacturers for the proprietary component supplier, each of them produces a product with two kinds of important vertical attributes, and these two products compete with each other by vertical differentiation. Both of them are willing to cooperate with the supplier, in order to adopt the proprietary component in their own product, and to attract more customers. The proprietary component supplier has the right to decide which one to cooperate with, and the problem the supplier faced with is, how to evaluate the benefits and market competitive situation, to select a better partner, and at the same time, find the best pricing method, to ensure the profit maximization.
The strategies taken by the manufacturers are depending on how the supplier prices the proprietary component. By numerical analysis, we figure out the relationship between the pricing and the manufacturers’ strategy game, then result in a best strategy for the supplier to price and select the downstream partner. The final Nash Equilibrium of two manufactures’ strategies and market competition situation will then be affected by the final decision of the proprietary component supplier.
Subjects
智權元件
要素品牌
品牌聯合
夥伴選擇
產品差異化
雙占市場
定價策略
Type
thesis
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ntu-103-R01546001-1.pdf
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