<p>Platform enablement refers to a platform that enhances a supplier’s competitive advantage by sharing key resources and capabilities. This paper investigates the dynamic interplay between store brand (SB) introduction and platform enablement within a for-profit manufacturer selling products through a dual-purpose platform. The study identifies three distinct SB introduction strategies in the reselling mode, whereas a boundary equilibrium, where the platform introduces an SB with negligible sales over a medium range of SB production cost, is non-credible in the agency selling mode. Platform enablement complicates the SB introduction decision by either eliminating the boundary equilibrium or generating two different scenarios in the reselling mode. Interestingly, in the presence of platform enablement, the SB introduction can paradoxically benefit the manufacturer, leading to Pareto improvements in both sales modes. In the reselling mode, these improvements are driven by competition promotion and enablement enhancement effects. In contrast, in the agency selling mode, they are influenced by transfer incentives and enablement enhancement effects. Platform enablement emerges as a dominant strategy for the platform and induces the SB introduction.</p>

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Nourish your competitor? Strategic store brand introduction with platform enablement in online platforms

  • Dongdong Yu,
  • Lingling Tan,
  • Zhini Wang

摘要

Platform enablement refers to a platform that enhances a supplier’s competitive advantage by sharing key resources and capabilities. This paper investigates the dynamic interplay between store brand (SB) introduction and platform enablement within a for-profit manufacturer selling products through a dual-purpose platform. The study identifies three distinct SB introduction strategies in the reselling mode, whereas a boundary equilibrium, where the platform introduces an SB with negligible sales over a medium range of SB production cost, is non-credible in the agency selling mode. Platform enablement complicates the SB introduction decision by either eliminating the boundary equilibrium or generating two different scenarios in the reselling mode. Interestingly, in the presence of platform enablement, the SB introduction can paradoxically benefit the manufacturer, leading to Pareto improvements in both sales modes. In the reselling mode, these improvements are driven by competition promotion and enablement enhancement effects. In contrast, in the agency selling mode, they are influenced by transfer incentives and enablement enhancement effects. Platform enablement emerges as a dominant strategy for the platform and induces the SB introduction.