Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance
The article considers the influence of demand disturbance on price, service capability, and operation mode selection of firms. Firstly, we discuss the equilibrium pricing and service capability strategy of the firm under three operation modes: price and service competition, price competition and ser...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/6682833 |
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| _version_ | 1850169709544079360 |
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| author | Kun Wang Dongsong Wu |
| author_facet | Kun Wang Dongsong Wu |
| author_sort | Kun Wang |
| collection | DOAJ |
| description | The article considers the influence of demand disturbance on price, service capability, and operation mode selection of firms. Firstly, we discuss the equilibrium pricing and service capability strategy of the firm under three operation modes: price and service competition, price competition and service capability sharing, and price and service centralized making-decision. When there is demand disruption, firms determine their pricing and service capacity strategies under the three main operating models above. Finally, the comparative analysis shows that the influence of service capability in centralized decision price and service capability mode is greater than that on service capability in price competition and service capability sharing mode. The smoothness of service capability in price competition and service capability sharing mode is better than that in the centralized decision mode. And when the market price competition coefficient is moderate or the negative demand disturbance occurs, the price competition and service capability sharing mode has little influence on the profit compared with the other two modes (the profit loss is the smallest). |
| format | Article |
| id | doaj-art-a9b476dba31d49be9c70b25c39bcc34c |
| institution | OA Journals |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-a9b476dba31d49be9c70b25c39bcc34c2025-08-20T02:20:40ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/66828336682833Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand DisturbanceKun Wang0Dongsong Wu1School of Business, Nankai University, Tianjin 300071, ChinaSchool of Economics, Tianjin University of Finance and Economics, Tianjin 300222, ChinaThe article considers the influence of demand disturbance on price, service capability, and operation mode selection of firms. Firstly, we discuss the equilibrium pricing and service capability strategy of the firm under three operation modes: price and service competition, price competition and service capability sharing, and price and service centralized making-decision. When there is demand disruption, firms determine their pricing and service capacity strategies under the three main operating models above. Finally, the comparative analysis shows that the influence of service capability in centralized decision price and service capability mode is greater than that on service capability in price competition and service capability sharing mode. The smoothness of service capability in price competition and service capability sharing mode is better than that in the centralized decision mode. And when the market price competition coefficient is moderate or the negative demand disturbance occurs, the price competition and service capability sharing mode has little influence on the profit compared with the other two modes (the profit loss is the smallest).http://dx.doi.org/10.1155/2021/6682833 |
| spellingShingle | Kun Wang Dongsong Wu Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance Discrete Dynamics in Nature and Society |
| title | Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance |
| title_full | Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance |
| title_fullStr | Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance |
| title_full_unstemmed | Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance |
| title_short | Operation Strategies Based on Horizontal Competition and Service Capability Sharing under Demand Disturbance |
| title_sort | operation strategies based on horizontal competition and service capability sharing under demand disturbance |
| url | http://dx.doi.org/10.1155/2021/6682833 |
| work_keys_str_mv | AT kunwang operationstrategiesbasedonhorizontalcompetitionandservicecapabilitysharingunderdemanddisturbance AT dongsongwu operationstrategiesbasedonhorizontalcompetitionandservicecapabilitysharingunderdemanddisturbance |