A study on efficiency of co-opetition between the supply chain alliances dominated by retailers

In the background of electronic business, the giant retailer would make supply chain alliance with suppliers in order to get competitive superiority with other retailers by vertical cooperation within the supply chain. But there is not only one relationship of competition between the supply chains dominated by different retailers, there is another relationship of cooperation can be chosen namely, the relationship of horizontal co-operation between the different supply chains. This paper discusses the economic effect from the co-opetition game between retailers as core members of the Supply chains in a specific market structure. The model and numerical simulation analysis show that only the strong degree of complementarities can lead the co-opetition game which can enhance the efficiency of supply chain alliance respectively.