Dual markets competition in supply chain based on a weakest traditional retailer

The existence of both traditional market and electronic market complexities supply chain competition. Based on a weakest traditional retailer which buys product from manufacturer 1, who contend against manufacturer 2 in electronic market. This paper finds out their optimal decisions, and the conditions in which supply chain coordinates. After that, it analyses how manufacturers´ product costs affect three enterprises´ optimal revenues, and the paper also finds out some managerial inspirations.