How internet promotion forms affect capacity optimization based on a weakest online manufacturer? From the dual markets competition perspective

Brand and channel are two promotion forms in Internet market. The paper researches three partners´ games in both Internet market and traditional market to solve capacity optimization. Being a leader the first manufacturer´s role becomes complicated, which is the weaker traditional retailer´s supplier and competing with the second weakest manufacturer on the internet at the same time. It finds out their optimal decisions, and conditions in which supply chain coordinates. Then it focuses on analyzing how the manufacturer 1´s two promotion forms affect three enterprises´ optimal revenues, etc. Besides, some managerial inspiration about capacity optimization could be find out.