Evaluation of Supply Chain Competitiveness Based on Game Theory

With business management mode changing from a single company to a network company, market competition has been no longer a firm versus a firm but rather a supply chain versus a supply chain. Thus, the following questions naturally rise. What about the competitiveness of a supply chain? How does a supply chain win another one? What market share can a winning supply chain gain? They have attracted the attentions of numerous researchers and are also the focus of this paper, which tries to answer the questions by evaluating supply chain competitiveness from the perspective of game theory. This paper proposes that supply chain competitiveness is determined by supply chain information, supply chain strategy and supply chain payoff collectively. It sets up a system of evaluating indicators and evaluates the competitiveness synthetically. To demonstrate the application of the evaluation method introduced in the paper, lots of firms of Guangdong Province are studied and five supply chains are chosen to be evaluated with their competitiveness. The results provide some guidelines for decision makers to improve the supply chain competitiveness and gain much more market shares.