Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members
To investigate the impact of different strategies adopted by the merged firm on supply chain members, we consider a two-tier supply chain involving two suppliers and multiple manufacturers. Different from most studies, manufacturers, downstream in the supply chain, are asymmetric and produce differe...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/4297111 |
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| author | Huailiang Zhang Yan Zhou Minghui Jiang |
| author_facet | Huailiang Zhang Yan Zhou Minghui Jiang |
| author_sort | Huailiang Zhang |
| collection | DOAJ |
| description | To investigate the impact of different strategies adopted by the merged firm on supply chain members, we consider a two-tier supply chain involving two suppliers and multiple manufacturers. Different from most studies, manufacturers, downstream in the supply chain, are asymmetric and produce differentiated products. Due to the differences between products, the postmerger manufacturer can choose focus strategy to generate synergy effect or differentiation strategy to implement price collusion. We give equilibrium results for the supply chain under different strategies. Theoretical analysis shows that for supplier, no matter which strategy is chosen, the price sensitivity for suppliers will increase. Surprisingly, the merger has the opposite effect on the profits of two suppliers under differentiation strategy. Regarding the strategic options after the merger, our research indicates that with the increased substitutability between products, shifting from differentiation strategy to focus strategy should be taken by the postmerger manufacturer. In addition, when focus strategy is chosen and the synergy effect is weak, or when differentiation strategy is chosen and the substitution between products is small, the merger may be beneficial to nonparticipating manufacturers. |
| format | Article |
| id | doaj-art-bf29d714b61145829b010b63f0205f8f |
| institution | OA Journals |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-bf29d714b61145829b010b63f0205f8f2025-08-20T02:18:58ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/4297111Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain MembersHuailiang Zhang0Yan Zhou1Minghui Jiang2School of ManagementSchool of ManagementSchool of ManagementTo investigate the impact of different strategies adopted by the merged firm on supply chain members, we consider a two-tier supply chain involving two suppliers and multiple manufacturers. Different from most studies, manufacturers, downstream in the supply chain, are asymmetric and produce differentiated products. Due to the differences between products, the postmerger manufacturer can choose focus strategy to generate synergy effect or differentiation strategy to implement price collusion. We give equilibrium results for the supply chain under different strategies. Theoretical analysis shows that for supplier, no matter which strategy is chosen, the price sensitivity for suppliers will increase. Surprisingly, the merger has the opposite effect on the profits of two suppliers under differentiation strategy. Regarding the strategic options after the merger, our research indicates that with the increased substitutability between products, shifting from differentiation strategy to focus strategy should be taken by the postmerger manufacturer. In addition, when focus strategy is chosen and the synergy effect is weak, or when differentiation strategy is chosen and the substitution between products is small, the merger may be beneficial to nonparticipating manufacturers.http://dx.doi.org/10.1155/2022/4297111 |
| spellingShingle | Huailiang Zhang Yan Zhou Minghui Jiang Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members Discrete Dynamics in Nature and Society |
| title | Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members |
| title_full | Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members |
| title_fullStr | Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members |
| title_full_unstemmed | Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members |
| title_short | Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members |
| title_sort | effects of strategic choices for the postmerger manufacturer on supply chain members |
| url | http://dx.doi.org/10.1155/2022/4297111 |
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