Introducing Mobile Channel into Electronic Supply Chain

In this paper we study the impact of introducing a mobile channel into a supply chain. Thus, the supply chain owns an electronic channel, a mobile channel and a traditional channel. We model the context as a Stackelberg game. Through numerical experiments, we find that as mobile channel becomes more distinct from existing channels and becomes cheaper, consumers and manufacturer will be better off. We also find the manufacturer´s inclination to mobile channel will not eliminate the traditional channel. However, the manufacturer´s mobile channel has to keep a balance between attracting consumers for retailers and for itself.