# Strategic Business Mode Choices for E-Commerce Platforms under Brand Competition

^{1}

^{2}

^{*}

*J. Theor. Appl. Electron. Commer. Res.*

**2022**,

*17*(4), 1769-1790; https://doi.org/10.3390/jtaer17040089

## Abstract

**:**

## 1. Introduction

## 2. Literature Review

#### 2.1. The Strategic Mode Selection

#### 2.2. The Brand Competition

#### 2.3. Platform Retailing

## 3. Model Description

## 4. Equilibrium Analysis

#### 4.1. Retailer Mode

#### 4.2. Online Marketplace Mode

**Proposition 1.**

#### 4.3. Hybrid Mode with Platform Offering New Brand Marketplace

#### 4.4. Hybrid Mode with Platform Offering Existing Brand Marketplace

**Proposition 2.**

## 5. Strategic Mode Choice

#### 5.1. Comparison of Business Modes

**Proposition 3.**

**Proposition 4.**

#### 5.2. Strategy Selection

**Proposition 5.**

**Proposition 6.**

**Proposition 7.**

## 6. Sensitivity Analysis

#### 6.1. The Impact of Production Cost c

**Corollary 1.**

**Corollary 2.**

#### 6.2. The Impact of Consumers’ Acceptance of New Brand $\theta $

**Corollary 3.**

**Corollary 4.**

**Corollary 5.**

## 7. Conclusions and Discussion

#### 7.1. Conclusions

#### 7.2. Discussion

#### 7.3. Management Insights

#### 7.4. Future Research Directions

## Author Contributions

## Funding

## Institutional Review Board Statement

## Informed Consent Statement

## Data Availability Statement

## Acknowledgments

## Conflicts of Interest

## Appendix A

**Proof of Proposition 1.**

**Proof of Proposition 2.**

**Proof of Proposition 3.**

**Proof of Proposition 4.**

**Proof of Proposition 5.**

**Proof of Proposition 6.**

**Proof of Sensitivity Analysis.**

**Proof of Corollary 1.**

**Proof of Corollary 2.**

**Proof of Corollary 3.**

**Proof of Corollary 4.**

**Proof of Corollary 5.**

## References

- Abhishek, V.; Jerath, K.; Zhang, Z.J. Agency selling or reselling? Channel structures in electronic retailing. Manag. Sci.
**2016**, 62, 2259–2280. [Google Scholar] - Feng, N.; Chen, J.; Feng, H.; Li, M. Optimal product selection and pricing strategies for platform vendors under two-sided network effects. Electron. Commer. Res. Appl.
**2020**, 43, 1–15. [Google Scholar] - Guo, X.; Zheng, S.; Yu, Y.; Zhang, F. Optimal bundling strategy for a retail platform under agency selling. Prod. Oper. Manag.
**2022**, 30, 2273–2284. [Google Scholar] - Ha, A.Y.; Luo, H.; Shang, W. Supplier encroachment, information sharing, and channel structure in online retail platforms. Prod. Oper. Manag.
**2022**, 31, 1235–1251. [Google Scholar] - Li, X.; Ai, X. A choice of selling format in the online marketplace with cross-sales supply chain: Platform selling or traditional reselling? Electron. Commer. Res.
**2021**, 21, 393–422. [Google Scholar] - Zhang, Z.; Song, H.; Gu, X.; Shi, V.; Zhu, J. How to compete with a supply chain partner: Retailer’s store brand vs. manufacturer’s encroachment. Omega
**2021**, 103, 1–16. [Google Scholar] - He, Y.; Xu, Q.; Shao, Z. “Ship-from-store” strategy in platform retailing. Transp. Res. Part Logist. Transp. Rev.
**2021**, 145, 1–17. [Google Scholar] - Shen, Y.; Willems, S.P.; Dai, Y. Channel selection and contracting in the presence of a retail platform. Prod. Oper. Manag.
**2019**, 28, 1173–1185. [Google Scholar] - Tian, L.; Vakharia, A.J.; Tan, Y.; Xu, Y. Marketplace, reseller, or hybrid: Strategic analysis of an emerging e-commerce model. Prod. Oper. Manag.
**2018**, 27, 1595–1610. [Google Scholar] - Wang, C.; Leng, M.; Liang, L. Choosing an online retail channel for a manufacturer: Direct sales or consignment? Int. J. Prod. Econ.
**2018**, 195, 338–358. [Google Scholar] - Li, W.; Chen, J. Pricing and quality competition in a brand-differentiated supply chain. Int. J. Prod. Econ.
**2018**, 202, 97–108. [Google Scholar] - Luo, Z.; Chen, X.; Kai, M. The effect of customer value and power structure on retail supply chain product choice and pricing decisions. Omega
**2018**, 77, 115–126. [Google Scholar] - Amrouche, N.; Pei, Z.; Yan, R. Mail-in-rebate and coordination strategies for brand competition. Int. J. Prod. Econ.
**2022**, 247, 1–13. [Google Scholar] - Zhou, C.; Leng, M.; Liu, Z.; Cui, X.; Yu, J. The impact of recommender systems and pricing strategies on brand competition and consumer search. Electron. Commer. Res. Appl.
**2022**, 53, 1–15. [Google Scholar] - Li, Y.; Bai, X.; Xue, K. Business modes in the sharing economy: How does the OEM cooperate with third-party sharing platforms? Int. J. Prod. Econ.
**2020**, 221, 1–17. [Google Scholar] - Wei, J.; Lu, J.; Chen, W.; Xu, Z. Distribution contract analysis on e-Platform by considering channel role and good complementarity. J. Theor. Appl. Electron. Commer. Res.
**2020**, 16, 445–465. [Google Scholar] - Chen, L.; Nan, G.; Liu, Q.; Peng, J.; Ming, J. How do consumer fairness concerns affect an e-commerce platform’s choice of selling scheme? J. Theor. Appl. Electron. Commer. Res.
**2022**, 17, 1075–1106. [Google Scholar] - Wang, X.; Chaolu, T. The impact of offline service effort strategy on sales mode selection in an e-commerce supply chain with showrooming effect. J. Theor. Appl. Electron. Commer. Res.
**2022**, 17, 893–908. [Google Scholar] - Luo, Z.; Chen, X.; Chen, J.; Wang, X. Optimal pricing policies for differentiated brands under different supply chain power structures. Eur. J. Oper. Res.
**2017**, 259, 437–451. [Google Scholar] - Yang, L.; Ji, J.; Chen, K. Advertising games on national brand and store brand in a dual-channel supply chain. J. Ind. Manag. Optim.
**2018**, 14, 105–134. [Google Scholar] - Wang, R.; Nan, G.; Chen, L.; Li, M. Channel integration choices and pricing strategies for competing dual-channel retailers. IEEE Trans. Eng. Manag.
**2020**, 69, 2260–2274. [Google Scholar] - Zhou, C.; Ma, N.; Cui, X.; Liu, Z. The impact of online referral on brand market strategies with consumer search and spillover effect. Soft Comput.
**2020**, 24, 2551–2565. [Google Scholar] - Wang, L.; Chen, J.; Song, H. Manufacturer’s channel strategy with retailer’s store brand. Int. J. Prod. Res.
**2021**, 59, 3042–3061. [Google Scholar] - Zhang, Y.; Huang, M.; Tian, L.; Jin, D.; Cai, G. Build or join a sharing platform? The choice of manufacturer’s sharing mode. Int. J. Prod. Econ.
**2021**, 231, 1–14. [Google Scholar] - Lin, X.; Zhou, Y.W.; Xie, W.; Zhong, Y.; Cao, B. Pricing and Product-bundling Strategies for E-commerce Platforms with Competition. Eur. J. Oper. Res.
**2020**, 283, 1026–1039. [Google Scholar] - Xu, Q.; He, Y. Optimal information disclosure strategies for a retail platform in the blockchain technology era. Int. J. Prod. Res.
**2021**, 9, 1–12. [Google Scholar] - Yu, J.; Zhou, C.; Wang, Y.; Liu, Z. Incentive contract design for supply chain enterprise’s pollution abatement with carbon tax. Math. Probl. Eng.
**2021**, 2021, 5556796. [Google Scholar] - Yu, J.; Song, Z.; Zhou, C. Self-supporting or third-party? The optimal delivery strategy selection decision for e-tailers under competition. Kybernetes
**2022**. [Google Scholar] [CrossRef]

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. |

© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).

## Share and Cite

**MDPI and ACS Style**

Yu, J.; Zhao, J.; Zhou, C.; Ren, Y.
Strategic Business Mode Choices for E-Commerce Platforms under Brand Competition. *J. Theor. Appl. Electron. Commer. Res.* **2022**, *17*, 1769-1790.
https://doi.org/10.3390/jtaer17040089

**AMA Style**

Yu J, Zhao J, Zhou C, Ren Y.
Strategic Business Mode Choices for E-Commerce Platforms under Brand Competition. *Journal of Theoretical and Applied Electronic Commerce Research*. 2022; 17(4):1769-1790.
https://doi.org/10.3390/jtaer17040089

**Chicago/Turabian Style**

Yu, Jing, Jingjing Zhao, Chi Zhou, and Yufei Ren.
2022. "Strategic Business Mode Choices for E-Commerce Platforms under Brand Competition" *Journal of Theoretical and Applied Electronic Commerce Research* 17, no. 4: 1769-1790.
https://doi.org/10.3390/jtaer17040089