Entering the high-end market by collecting and remanufacturing a competitor's high-end cores

Dongmei Xue, Ruud Teunter, Stuart Zhu, W. Zhou*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

5 Citaten (Scopus)
11 Downloads (Pure)

Samenvatting

Motivated by the smartphone industry, this paper studies a duopoly channel consisting of a high-end firm and a low-end firm. The high-end firm sells its own brand at a high profit margin. The low-end firm sells its own brand at a low profit margin, but can choose to differentiate by collecting and remanufacturing high-end cores, thereby entering the more lucrative high-end market. We investigate how the
equilibrium strategies of both firms are influenced by the cost structure and customers’ valuation. We derive a condition for the low-end firm to engage in remanufacturing high-end cores, and show how the high-end firm reacts to limit the loss of market share.
Originele taal-2English
Artikelnummer102168
Aantal pagina's12
TijdschriftOmega
Volume99
Vroegere onlinedatum4-dec-2019
DOI's
StatusPublished - mrt-2021

Citeer dit