Dietl, Helmut Max
Wagner, Stephan M.
- Working Paper
This paper analyzes competitive strategies and the impending market entry of a new player in the German Business-to-Business (B2B) parcel market. Currently there a four large service providers in the German B2B parcel market. Each of these incumbent providers operates - albeit with varying degrees of automation - with a classical multi-hub-and-spoke network. The entrant plans to enter the B2B parcel market with a completely new parcel delivery system and network. Such operations shall enable the incumbent to offer new services to potential customers and realize lower costs and prices than the established rms. We describe the market and contrast the incumbents' and the entrant's strategy and operations. We develop a game-theoretic Cournot model with economies of scale and different cost functions to analyze the effect of the entrant's market entry on competition, market shares, prices, costs and profits. We present calibrated results illustrating the impact of market entry in various scenarios. Show more
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Journal / seriesWorking paper series
PublisherChair of Strategic Management and Business Policy University of Zurich
Organisational unit03813 - Wagner, Stephan M. / Wagner, Stephan M.
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