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Effectiveness of exclusive territories by competing manufacturers managing dual‐channel supply chains

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  • Kenji Matsui
  • Yushi Tsunoda

Abstract

This paper investigates a supply chain management problem concerning whether a manufacturer should apply exclusive territories of sales when the manufacturer can distribute products through dual‐channel supply chains. We first demonstrate that even when a manufacturer cannot use the direct channel, the adoption of the exclusive territories can be optimal. One noteworthy result is that when a manufacturer can use dual channels, the adoption of exclusive territories can boost manufacturer's profit even if the products are more differentiated between manufactures than when the manufacturer can use only a single retail channel. These results provide useful insights for manufacturers.

Suggested Citation

  • Kenji Matsui & Yushi Tsunoda, 2022. "Effectiveness of exclusive territories by competing manufacturers managing dual‐channel supply chains," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1015-1024, June.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:4:p:1015-1024
    DOI: 10.1002/mde.3435
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