553 / 2024-04-25 21:57:00

Supply chain cooperation strategies considering the value of intelligent driving in electric automobile industry

Supply chain management; Game theory; Intelligent electric vehicle; Supply chain cooperation; Network effect

Electrification and intelligence have become new trends in the development of the automotive industry. Traditional technology enterprises have a first-mover advantage in intelligent technology (such as NVIDIA and Huawei). At this point, suppliers can either provide traditional standardized hardware products (Tier model, such as chips, sensors), or offer a complete set of solutions (HI model, such as intelligent cabins and chassis systems), and they may even deeply participate in the design, marketing, and sales of products (HL model). With diversified cooperation models, how to choose becomes an important strategic decision for traditional automobile manufacturers. By constructing a game theory model, this paper studies the strategic choices of automotive manufacturers and intelligent suppliers, and seeks the conditions for win-win situation. The research shows that intelligent suppliers have a strong incentive to choose HL mode. The reason is that HL helps to leverage network externalities and increase overall supply chain revenue. For manufacturers, they will choose HL only when network externalities are strong enough. At this point, the benefits brought by the network externalities can compensate the losses caused by the loss of power. The stronger the manufacturer's bargaining power, the stronger the manufacturers’ motivation for HL. Finally, we find that when network externalities are strong, the equilibrium strategies of manufacturers and suppliers are consistent, creating a win-win outcome. Therefore, intelligent suppliers should focus on improving the level of network externalities of their products (such as developing ecosystems) and appropriately shift some profits to manufacturers to achieve win-win outcome.