Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

As the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct...

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Main Authors: Zhiwen Li, Baojiao Wang, Yeting Wu
Format: Article
Language:English
Published: MDPI AG 2024-07-01
Series:Journal of Theoretical and Applied Electronic Commerce Research
Subjects:
Online Access:https://www.mdpi.com/0718-1876/19/3/91
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author Zhiwen Li
Baojiao Wang
Yeting Wu
author_facet Zhiwen Li
Baojiao Wang
Yeting Wu
author_sort Zhiwen Li
collection DOAJ
description As the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct e-commerce channels: one based on a direct sale model and the other on a reselling model. It builds a theoretical model to examine the supplier’s decision-making across three strategic options: a simultaneous launch through both channels, a sequential launch starting with the direct sale model followed by the reselling model, and vice versa. The equilibria of those options are derived through game analysis and further compared. The results reveal that for suppliers under a non-alliance pricing contract, a simultaneous product launch across both channels is the most advantageous approach. Conversely, in scenarios where an alliance pricing contract is in place, the optimal strategy shifts towards a sequential launch. The decision of which channel to ally with—whether the direct sale or the reselling model—hinges critically on the difference in service efficiency and the intensity of competition between the channels. This nuanced analysis highlights the importance of strategic flexibility and alignment with channel dynamics in maximizing product launch success in the evolving e-commerce environment.
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spelling doaj-art-fee02482f93b4ac2bd46b805c3ff07542025-08-20T01:55:35ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762024-07-011931848186810.3390/jtaer19030091Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different ModelsZhiwen Li0Baojiao Wang1Yeting Wu2School of Management, Jiangsu University, Zhenjiang 212013, ChinaSchool of Management, Jiangsu University, Zhenjiang 212013, ChinaSchool of Management, Jiangsu University, Zhenjiang 212013, ChinaAs the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct e-commerce channels: one based on a direct sale model and the other on a reselling model. It builds a theoretical model to examine the supplier’s decision-making across three strategic options: a simultaneous launch through both channels, a sequential launch starting with the direct sale model followed by the reselling model, and vice versa. The equilibria of those options are derived through game analysis and further compared. The results reveal that for suppliers under a non-alliance pricing contract, a simultaneous product launch across both channels is the most advantageous approach. Conversely, in scenarios where an alliance pricing contract is in place, the optimal strategy shifts towards a sequential launch. The decision of which channel to ally with—whether the direct sale or the reselling model—hinges critically on the difference in service efficiency and the intensity of competition between the channels. This nuanced analysis highlights the importance of strategic flexibility and alignment with channel dynamics in maximizing product launch success in the evolving e-commerce environment.https://www.mdpi.com/0718-1876/19/3/91product launche-commerce channelalliance pricing contractnon-alliance pricing contractstrategy selection
spellingShingle Zhiwen Li
Baojiao Wang
Yeting Wu
Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
Journal of Theoretical and Applied Electronic Commerce Research
product launch
e-commerce channel
alliance pricing contract
non-alliance pricing contract
strategy selection
title Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
title_full Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
title_fullStr Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
title_full_unstemmed Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
title_short Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models
title_sort simultaneous or sequential supplier product launch strategy through e commerce channels with different models
topic product launch
e-commerce channel
alliance pricing contract
non-alliance pricing contract
strategy selection
url https://www.mdpi.com/0718-1876/19/3/91
work_keys_str_mv AT zhiwenli simultaneousorsequentialsupplierproductlaunchstrategythroughecommercechannelswithdifferentmodels
AT baojiaowang simultaneousorsequentialsupplierproductlaunchstrategythroughecommercechannelswithdifferentmodels
AT yetingwu simultaneousorsequentialsupplierproductlaunchstrategythroughecommercechannelswithdifferentmodels