There are two parts of this research, both related to the channel strategy of firms.

Part 1: Strategic Value of Capacity Commitment with Asymmetric Channel Competition

Motivated by the growing dominance of large retailers, we examine the strategic value of capacity commitment when a dominant retailer in a centralised channel competes against a small retailer in a decentralised channel.

In this research, we develop a stylised model with two asymmetric channels, namely, one centralised and one decentralised, both of which order from the same manufacturer to sell to downstream consumers. In the centralised channel, the dominant retailer orders directly from the manufacturer and has the option to commit its capacity. The decentralised channel comprises of a wholesaler which orders directly from the manufacturer and sells to a small retailer, which in turn sells to downstream consumers. The wholesaler in the decentralised channel also has the option to commit its capacity. The objective of this research is to determine the extent in which the channel structure affects the strategic value of capacity commitment for firms.

Part 2: Distribution and After-Sales Service Channel: Strategies under Asymmetric Retailer Competition

Current voices from marketing scholars and practitioners have predominantly focused on the cost benefits when production of goods or provision of service is outsourced to lower-cost providers.

In this research, we study the dual effects of distribution channel and after-sales service channel strategies when firms do not have any advantage on service provision costs. We examine the strategic interaction between the manufacturer’s distribution and after-sales service channel strategies. We seek to understand how the channel structure affects after-sales provision and the possibility of outsourcing.