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.