Abstract
The paper considers a supply chain contain two competing manufacturers with different market share and a retailer, examines the impact of different market share on product quality level and supply chain profits while two manufacturers competition and cooperation. The conclusions show that: from the market share point of view, whether the two manufacturers are competing or cooperation, the greater the market share of the manufacturers, product quality level, market demand and profits of manufacturers and retailer are higher, and they increasing with the increase of the market share. Under the condition of cooperation, the wholesale price, retail price, product quality level and the profits of manufacture are higher than those of the competition, but the market demand and the profits of the retailer are lower. For the same market share gap, the gap between the two manufacturers' demand and the profits in cooperation model are greater than that of the competition model, while the gap of quality level in the cooperation model is the same as that of the competition model, and they all increase with the increase of the market share gap.
