Supply chain interactions and strategic product deletion Decisions: A Game-Theoretic analysis
研究了企业删除产品时，上游供应商和下游竞争对手的互动如何影响这一决策，发现产品删除不仅是企业内部决定，还涉及供应链上下游的博弈，对管理者优化产品组合有参考价值。
Product portfolio rationalization is critical to long-term organizational competitiveness. Rationalizing a product portfolio includes adding new products, modifying ill-performing products, or removing obsolete products. Product deletion affects supply chain relationships. For example, when firms delete a product, the supplier who solely provides for this product will be likely to be terminated. To advance knowledge on product deletion decisions, we consider competitive concerns on upstream and downstream supply chain actors and their interplay with the focal firm’s strategic product deletion decisions. Specifically, we analyze a vertically differentiated market where firms decide whether to delete products from their portfolio. We consider various scenarios where competitors decide whether products should be deleted. Whether made by an individual or both firms, product deletion decisions will affect relative competitiveness and profitability measures. These findings provide managerial insights for managing supply chains. Product deletion should not be considered just a single organizational decision but an inter-organizational decision where supply chain interactions with upstream and downstream stakeholders affect organizational competitiveness. This study sets the stage for more comprehensive collaborative strategic planning in multi-tier supply chains using product deletion as a linkage. Theoretical and managerial implications provoke new avenues for future study.