Product design and pricing strategies in a closed-loop supply chain with patent protection

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lu Xiao ◽  
Zhi-Ying Wu ◽  
Song-Ling Zhang ◽  
Zhen-Song Chen ◽  
Kannan Govindan
Keyword(s):  
Product Design ◽  
Patent Protection ◽  
Unit Cost ◽  
Third Party ◽  
Pricing Strategies ◽  
Design Strategies ◽  
Patent Licensing ◽  
Content Type ◽  
Optimal Decisions ◽  
Second Period

PurposeThis paper aims to propose a two-period model in which an original equipment manufacturer (OEM) decides the remanufacturability level of products in product design and unit patent licensing fee at the first period, and a third-party remanufacturer (3PR) that has been licensed by the OEM enters the remanufacturing market to compete with the OEM at the second period.Design/methodology/approachThis paper analyzes the OEM's optimal decisions of remanufacturability level in the product design and unit patent licensing fee at the first period, as well as the OEM's and the 3PR's optimal decisions of selling prices at the second period, under two scenarios that the remanufacturing is constrained or unconstrained by the collected quantity available at the end of the first period, by making use of game theory.FindingsThe study finds that the OEM will choose high remanufacturability in product design only when the unit cost saving of remanufacturing or unit production cost of new products exceed certain thresholds.Originality/valueThe study is the first attempt to simultaneously integrate product design and patent licensing in remanufacturing. It provides useful insights for OEM managers who face competition from 3PRs and may use their product design strategies to deter 3PRs and may protect patent of products by levying patent licensing fees from 3PRs.

Managing new and remanufactured products with remanufacturing degree under patent protection

Kybernetes ◽  
2019 ◽  
Vol 49 (3) ◽  
pp. 707-731
Author(s):  
Xiaogang Cao ◽  
Xianjia Wang ◽  
Hui Wen
Keyword(s):  
Negative Correlation ◽  
New Products ◽  
Wholesale Price ◽  
Retail Price ◽  
Third Party ◽  
Patent Licensing ◽  
Content Type ◽  
Positive Correlation ◽  
The Third ◽  
Second Period

Purpose This paper aims to propose a two-period model, including an original manufacturer, a retailer and a third-party remanufacturer, in which the products manufactured by the original manufacturer are patent-protected and the remanufacturing degree of remanufactured products influences the purchasing decisions of consumers. Design/methodology/approach This paper analyzes the decisions of the original manufacturer, the retailer and the third-party remanufacturer of two periods, using Stackelberg game and obtains the equilibrium solutions of the three parties. Findings The study finds that consumers’ focus degree to the remanufacturing degree has a negative correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale price of new products in the first period, but has a positive correlation with the retail price of new products in the second period. Originality/value (1) Consumers’ focus degree to the remanufacturing degree has a negative correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale price of new products in the first period, but has a positive correlation with the retail price of new products in the second period. (2) The remanufacturing action efficiency of the third-party remanufacturer has a positive correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale and retail prices of new products in the second period.

Optimal trade-in and third-party collection authorization strategies under trade-in subsidy policy

Kybernetes ◽  
2018 ◽  
Vol 47 (5) ◽  
pp. 854-872 ◽  
Author(s):  
Kaiying Cao ◽  
Qiushi Bo ◽  
Yi He
Keyword(s):  
Design Methodology ◽  
Profit Maximization ◽  
The Other ◽  
Third Party ◽  
Subsidy Policy ◽  
Content Type ◽  
The Third ◽  
Optimal Decisions ◽  
The Third Party ◽  
Practical Implications

Purpose This paper aims to study whether the recycling of a third party competes with the trade-in service of a manufacturer, and explores the optimal trade-in and third-party collection authorization strategies for the manufacturer. Design/methodology/approach According to whether to authorize a third party to collect its used products, the manufacturer has two choices: one is not authorization (NA); the other is authorization (A). This paper uses profit-maximization model to investigate the optimal decisions of the manufacturer and the third party under NA and A, respectively, and then explores which choice is better for the manufacturer. Findings It is observed that there is a competition between trade-in service and third-party recycling when the durability parameter of the used product is relatively small. Moreover, when the durability parameter of the used product is relatively large, A is always better choice for the manufacturer; otherwise, NA is a better choice except for the case that the unit trade-in subsidy is low and the salvage of the used product is high. Practical implications These results provide managerial insights for the manufacturer and the third party to make decisions in the field of recycling. Originality/value This paper is among the first papers to study the competition between trade-in program and third party’s collecting program under government’s trade-in subsidy policy. Moreover, this paper presents the conditions under which the manufacturer should authorize or not authorize the third party to collect its used products.

The competition between B2C platform and third-party seller considering sales effort

Kybernetes ◽  
2016 ◽  
Vol 45 (7) ◽  
pp. 1084-1108 ◽  
Author(s):  
Kaiying Cao ◽  
Ping He
Keyword(s):  
Design Methodology ◽  
Free Riding ◽  
Third Party ◽  
Content Type ◽  
Effort Level ◽  
The Third ◽  
Optimal Decisions ◽  
Negative Effect ◽  
The Third Party ◽  
Practical Implications

Purpose By studying the competition between a B2C platform and a third-party seller, the purpose of this paper is to analyze and compare their optimal decisions and profits between cases with and without sales effort of the platform or third-party seller. Design/methodology/approach This paper studies the competition between a B2C platform and a third-party seller. The platform sells a product directly, and allows the third-party seller to sell a competing product on the platform. Based on whether the platform or the third-party seller makes sales effort, there are four scenarios. The paper analyzes the optimal decisions and profits of platform and third-party seller under each scenario, respectively. Findings The transaction fee has a negative effect on third-party seller’s sales effort level. What is more, the platform can take a free riding from the third-party seller’s sales effort, but the platform’s sales effort has a negative effect on the profit of third-party seller. Practical implications These results provide managerial insights for the platform and the third-party seller to make decisions. Originality/value This paper is among the first papers to study the competition between B2C platform and third-party seller.

Circular product design: strategies, challenges and relationships with new product development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marina Fernandes Aguiar ◽  
Jaime A. Mesa ◽  
Daniel Jugend ◽  
Marco Antonio Paula Pinheiro ◽  
Paula Paula De Camargo Fiorini
Keyword(s):  
Product Development ◽  
Product Design ◽  
New Product Development ◽  
Circular Economy ◽  
Development Process ◽  
New Product ◽  
Research Area ◽  
Product Development Process ◽  
Design Strategies ◽  
Content Type

PurposeAlthough product design is a fundamental element in the transition towards the circular economy, the knowledge of practices, methods and tools oriented to circular product design has not been widely developed. This study aims to contribute to the circular economy research area by investigating and analyzing the main design approaches to circular products and their relationship to new product development.Design/methodology/approachThe authors conducted a systematic review and qualitative analysis of 120 articles. In these studies, the authors analyzed aspects such as design strategies used, the barriers to the adoption of circular product design and the relationships between the phases of new product development processes with circular product design studies.FindingsThe findings revealed that the circular product design approach has added new design strategies to those already recommended by ecodesign, such as multiple use cycles, emotional durability and biomimicry. Furthermore, the results showed that most circular product design articles focus on the planning and concept development phases of the new product development process.Originality/valueIn this article, the authors systematized the findings of an emergent research area: the development of new products for the circular economy. Its main contributions lie in the identification of design strategies, the classification of Design for X approaches, analysis of such approaches during the new product development process and discussion of their main barriers. Finally, this study presents contributions for managers and designers who are starting the transition to a circular strategy.

scholarly journals Managing Two-Echelon Remanufacturing Under Patent Protection

2020 ◽  
Vol 8 (6) ◽  
pp. 565-577
Author(s):  
Xiaogang Cao ◽  
Hui Wen
Keyword(s):  
Patent Protection ◽  
Stackelberg Game ◽  
Numerical Study ◽  
New Products ◽  
Wholesale Price ◽  
Retail Price ◽  
Equilibrium Solutions ◽  
Patent Licensing ◽  
Core Components ◽  
Second Period

Abstract We propose a two-echelon remanufacturing model in the context of two periods in which the factor of patent protection of the original manufacturer is considered. Through the analysis of the Stackelberg game among the supplier, the original manufacturer and the remanufacturer we obtain the equilibrium solutions of the unit patent licensing fee of the original manufacturer, the recycling effort degree of the remanufacturer, the wholesale price of new and remanufactured core components and the retail price of new and remanufactured products in the second period which are all dependent on the retail price of new products in the first period in cases with patent protection and without patent protection. In the numerical study we analyze the impacts of the remanufacturing rate of used products and the retail price of new products in the first period on the equilibrium results of the second period, and make a comparison between the case with patent protection and the case without patent protection.

Design-oriented strategy typology and innovation framework

2017 ◽  
Vol 15 (1) ◽  
pp. 13-30 ◽  
Author(s):  
Yen Hsu
Keyword(s):  
Literature Review ◽  
Product Design ◽  
Product Innovation ◽  
Electronics Industry ◽  
Global Market ◽  
Consumer Electronics ◽  
Design Strategies ◽  
Content Type ◽  
Consumer Electronic ◽  
Innovation Strategies

Purpose Using Taiwanese enterprises that produce computer and consumer electronics products as case subjects, this study aims to explore the effective product innovation strategies applied to cope with competition in the global market and develop a competitive advantage. The product design strategies and methods of companies that used different types of innovation strategies were then analyzed. Finally, a mapping framework for product innovation and design strategies was proposed for enterprises in the computer and consumer electronics industry in Taiwan. Design/methodology/approach The two stages of this study were a questionnaire survey and case studies. Stage 1: A questionnaire survey and literature review were performed to explore the innovation strategies used by companies in the Taiwanese computer and consumer electronics industry. The purpose of the literature review was to determine the definitions and content of innovation strategies. Stage 2: Design and R&D managers were interviewed to explore the practical design strategies and approaches to product design in the industry. Findings These four innovation strategies and ways of product design are closely related to the scale, business type and product development conditions in enterprises. Notably, different innovation strategies have different approaches to product design. Generally, product design emphasizes “new experience” in aggressive innovation enterprises, “new value” in market innovation enterprises, “new service” in technical innovation enterprises and “new positioning” in opportunity innovation enterprises. The findings of this study provide a reference for product R&D and design in enterprises. Originality/value In recent years, the global market of computer and consumer electronic products has been fiercely competitive. Therefore, only enterprises that can innovate, respond rapidly and maintain advantages in product design can survive in the market. Hopefully, this case study of companies in the Taiwan computer and consumer electronic industry can provide a reference for product R&D and design. The findings of this study provide a reference for product R&D and design in enterprises, especially the Chinese market.

scholarly journals Selling to strategic customers with cost uncertainty

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Guodaohou Song ◽  
Xiaofang Wang
Keyword(s):  
Production Cost ◽  
Learning Effect ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Strategic Customers ◽  
Cost Uncertainty ◽  
Intertemporal Pricing ◽  
Negative Comments ◽  
Second Period

AbstractProduction cost can be influenced by previous sales in an uncertain way. In reality, production cost may decrease in the number of initial buyers due to the learning effect, or increase in the number of initial buyers due to the quality-improving pressure from negative comments of unhappy users. Taking this uncertainty into account, this paper studies the optimal intertemporal pricing strategies of a firm when selling to strategic customers in two periods where production cost in the second period randomly changes with the number of buyers in the first period. Our results suggest how firms should adjust their optimal pricing strategies under different market circumstances.

scholarly journals Creating products in the absence of markets: a robust design approach

2008 ◽  
Vol 19 (3) ◽  
pp. 407-420 ◽  
Author(s):  
Philippe Silberzahn ◽  
Christophe Midler
Keyword(s):  
Longitudinal Study ◽  
Product Design ◽  
Robust Design ◽  
Practical Implication ◽  
Collaborative Work ◽  
High Tech ◽  
Content Type ◽  
Exploration Process ◽  
Strategic Process ◽  
Alternative Approach

PurposeThe purpose of this study is to examine how firms deal with a situation of true uncertainty about their potential markets and technologies. Specifically, it asks how firms can create products when the corresponding market does not exist.Design/methodology/approachThis paper is based on a longitudinal study of a high‐tech firm, combined with analysis of existing theory in product design and entrepreneurship.FindingsMarkets and products are usually a defining choice made early on by firms in their strategic process. Such a choice guides their development by providing a “stable concept” to which decisions can be related. When markets do not exist yet, however, this approach is not effective. Early choice of products and markets limits firms' flexibility by constraining their ability and willingness to adapt, while fundamental new technical and market information is likely to emerge during the project that will prove the initial assumptions wrong. The paper shows an alternative approach where products and markets actually result from a generic process of products and markets exploration driven by the firm. It is suggested that this approach forms a robust design in that it allows the firm to deal with the uncertainty by simultaneously developing its products and exploring markets, while preserving the flexibility to adapt to the changing environment.Practical implicationsThe practical implication of this paper is to suggest an alternative approach to deliberate planning in high‐tech ventures. With this approach, rather than markets and products, strategy defines a market and technology exploration process.Originality/valueThe paper is original in three ways. It links the product design and market exploration processes in high‐tech firm development; it is based on an in‐depth longitudinal study; and it results from an academic‐practitioner collaborative work.

Knowledge management for library building design

2016 ◽  
Vol 37 (1/2) ◽  
pp. 2-12 ◽  
Author(s):  
Zhixian Yi
Keyword(s):  
Knowledge Management ◽  
Tacit Knowledge ◽  
Explicit Knowledge ◽  
Continuous Process ◽  
Building Design ◽  
Design Principles ◽  
Design Strategies ◽  
Innovative Design ◽  
Content Type ◽  
Practical Implications

Purpose – In the digital age, constant changes in libraries inform contemporary building design. An innovative library building design is a complicated process and can be viewed as a continuous process of the use of tacit and explicit knowledge and innovative tools and approaches. Knowledge management (KM) can bring about the much needed innovation, and transform tacit knowledge to explicit knowledge. For the design of a library to be successful, it is necessary to apply KM to library building design. The purpose of this paper is to look at key change impacts, to explore how to manage knowledge in building design and to identify key design principles. Design/methodology/approach – This paper looks at key change impacts, explores how to manage knowledge in library building design and pinpoints design principles. Findings – This paper finds that KM can be vital to library building design, and it can be used in all stages: to examine the internal and external environments, transform tacit knowledge to explicit knowledge by using portals, and analyze existing and future issues and trends. When effectively used, KM will result in innovative design strategies and also will reduce the time and costs of the building design and plan processes. The main principles of library building design are flexibility, accessibility, safety and security, applicability, adaptability, efficiency, and sustainability. Practical implications – This paper provides a useful overview of how to manage knowledge in library building design and design principles. Originality/value – The views, discussions, and suggestions will be of value to improve the effectiveness of library building design.

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