Two Stages Strategy Analysis for Multi-Channel Competitive Game

With the development of E-Business, the supplier who considers to introduce the online channel to compete with retailer. We try to use the two strategies to ease the channel conflict. We suppose the online traditional retailer prices the same to the two channels of retailing channel and online channel. The supplier combines two channels to compete with the retailer. The research is done under the background abovementioned. Probability Theory, Mathematical Statistics and Game Theory are used to discuss competitively pricing problem for multi-channel supply chain management. We show that the introduction of the online channel of supplier is not bad to retailer in some cases. The traditional retailer should reduce the channel cost so that it can not be replaced forever.