The strategic analysis of the distribution channel under the B2C e-business mode

The network technology provides manufacturers with a new platform to contact with the consumers. Nowadays, in order to fulfill the rapid development, many manufacturers open B2C e-channel, while maintaining the traditional distribution channel. In this context, based on the theory of Cournot Game, this paper takes the duopoly manufacturers as an example, discusses the game process for their choice to open e-channel or not, and solves the Nash Equilibrium. The results indicates, when the cost of opening e-channel is lower than a critical value, the final equilibrium is both sides don´t open e-channel; when the cost is higher than another critical value, the final equilibrium is both sides open e-channel; when the cost is between the two critical values, a coordination system should be built.