Channel Competition in “One-to-Two” Supply Chain Based on Electronic Commerce

As implementation degree of electronic commerce increasing, this paper analyses the channel competition among large retailer, small retailer and the manufacturer in “One-to-Two” supply chain with different customer service level by game theory. It concludes that, when the manufacturer builds Internet direct channel, as implementation degree of electronic commerce increasing, the Internet direct channel´ price of manufacturer becomes cheaper, so does small retailer´s price. Besides, the Internet direct channel´ price of manufacturer has nothing to do with the small retailer´s customer service level.