What Happens When Suppliers Sell Directly in a Competitive Retail Market
Should suppliers sell on open platforms like ONDC? Research shows how market dynamics influence the decision.
Parshuram Hotkar
Assistant Professor of Operations Management. His research focuses on strategic interactions in competing supply chains, with applications in omnichannel retail and the pharmaceutical sector. He teaches supply chain optimisation, strategic procurement, operations, and social media analytics.
Video Summary
In this episode of The Big Picture, Professor Parshuram Hotkar explores what happens when two suppliers sell similar products through the same retailer, but one of them also starts selling directly to customers. Drawing on his co-authored study, he explains that when products are highly substitutable, having only one supplier selling directly to customers benefits everyone. But if both suppliers encroach, they may all end up worse off, like a classic prisoner’s dilemma.
Authored by ISB Editorial