Green innovative strategy of logistics enterprises based on hotelling expansion model

Assuming that the core enterprise's preference to the services of the two dominant logistics enterprises in the upstream supply chain obeys the uniform distribution, this paper examines the main influencing factors on the decision-making of the two logistics enterprises by the extended Hotelling's model. The results show that the decision-making is mainly affected by such factors as: the bit value at the initial state of each dominant enterprise, the cost difference between the two dominant enterprises, and the deviation cost ratio of the core enterprise's choice; under certain conditions, there exist the intervals for the maximum differentiation strategy and the maximum assimilation strategy. The research sheds new light on the green innovation strategy of supply chain logistics enterprises.