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Conclusion and Managerial Insights

In: Collaborative Promotions

Author

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  • Daniela Wiehenbrauk

Abstract

This thesis considers the collaboration between manufacturer and retailer through sharing upstream information that is suited to serve as the basis of a retailer’s joint optimization of promotion strategy and order quantity. In a competitive environment, we apply the fundamentals of game theory to describe the retailer’s decision-making process in a two-stage approach and determine the value of information sharing. The Competition Index is introduced and provides a new and unique framework for upstream information sharing. We further extend our view to the entire supply chain including manufacturer, retailer as well as loyal and smart customer segments. As a result, we demonstrate the possibility of improving supply chain efficiency and thereby achieving a win–win–win situation by means of collaborative promotions. We will summarize the key findings by pointing out (1) the impact of customer demand and (2) the resulting strategic options for retailers. We suggest as an appropriate strategy the idea of (3) improving supply chain efficiency by collaborative promotions.

Suggested Citation

  • Daniela Wiehenbrauk, 2010. "Conclusion and Managerial Insights," Lecture Notes in Economics and Mathematical Systems, in: Collaborative Promotions, chapter 0, pages 127-130, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-13393-0_6
    DOI: 10.1007/978-3-642-13393-0_6
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