Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover
This paper develops an analytical framework to study a manufacturer’s optimal business strategy involving the interaction of product sharing and product rollover in the sharing economy. Our analysis reveals that, regardless of whether the production cost is high or low, the manufacturer will partici...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/2328602 |
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| _version_ | 1832554092929482752 |
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| author | Jian Feng Bin Liu Zhenfeng Liu |
| author_facet | Jian Feng Bin Liu Zhenfeng Liu |
| author_sort | Jian Feng |
| collection | DOAJ |
| description | This paper develops an analytical framework to study a manufacturer’s optimal business strategy involving the interaction of product sharing and product rollover in the sharing economy. Our analysis reveals that, regardless of whether the production cost is high or low, the manufacturer will participate in product sharing as long as the new product’s rental cost is not very high. Furthermore, under the manufacturer’s participation in product sharing, the manufacturer will sell two generations of products when the production cost is low. When the production cost is moderate, the manufacturer will adopt single rollover. Finally, the manufacturer’s participation in product sharing will increase the old/new product’s price and the manufacturer’s total profits but will decrease the old/new product’s demand in the sales market. Meanwhile, the manufacturer’s product sharing will decrease the price and demand of idle products from owners in the sharing market. |
| format | Article |
| id | doaj-art-77944b5d433e457aadde707f478d5889 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-77944b5d433e457aadde707f478d58892025-02-03T05:52:27ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/23286022328602Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product RolloverJian Feng0Bin Liu1Zhenfeng Liu2China Institute of FTZ Supply Chain, Shanghai Maritime University, Shanghai 201306, ChinaSchool of Economics and Management, Shanghai Maritime University, Shanghai, ChinaSchool of Economics and Management, Shanghai Maritime University, Shanghai, ChinaThis paper develops an analytical framework to study a manufacturer’s optimal business strategy involving the interaction of product sharing and product rollover in the sharing economy. Our analysis reveals that, regardless of whether the production cost is high or low, the manufacturer will participate in product sharing as long as the new product’s rental cost is not very high. Furthermore, under the manufacturer’s participation in product sharing, the manufacturer will sell two generations of products when the production cost is low. When the production cost is moderate, the manufacturer will adopt single rollover. Finally, the manufacturer’s participation in product sharing will increase the old/new product’s price and the manufacturer’s total profits but will decrease the old/new product’s demand in the sales market. Meanwhile, the manufacturer’s product sharing will decrease the price and demand of idle products from owners in the sharing market.http://dx.doi.org/10.1155/2020/2328602 |
| spellingShingle | Jian Feng Bin Liu Zhenfeng Liu Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover Complexity |
| title | Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover |
| title_full | Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover |
| title_fullStr | Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover |
| title_full_unstemmed | Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover |
| title_short | Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover |
| title_sort | manufacturer s business strategy interaction of sharing economy and product rollover |
| url | http://dx.doi.org/10.1155/2020/2328602 |
| work_keys_str_mv | AT jianfeng manufacturersbusinessstrategyinteractionofsharingeconomyandproductrollover AT binliu manufacturersbusinessstrategyinteractionofsharingeconomyandproductrollover AT zhenfengliu manufacturersbusinessstrategyinteractionofsharingeconomyandproductrollover |