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Published in:
2014 | OriginalPaper | Chapter
Internet of Vehicles Service in Dual Channel Supply Chains: Who Should Provide?
Authors : Zhang Rong, Liu Bin
Published in: Internet of Vehicles – Technologies and Services
Publisher: Springer International Publishing
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Internet of Vehicles is strategic industries in China, which can provide information service for consumer and further increases the market demand for firms. When a manufacturer uses a retailer as a channel for reaching end customers, the IOV strategy takes on an additional dimension: who should provide IOV service to end customers, and what is the equilibrium for providers. We examine the efficacy of IOV service by manufacturer, IOV service by retailer, and overall supply chain in a model of two competing manufacturer-retailer supply chains who sell partially substitutable IOV service that may differ in market size. Findings suggest that that supply chain efficiency is higher with the IOV service by retailer if the service substitutability is low.