Strategy Selection And Effect Analysis Of Autonomous Trade-in For An Enterprise Based On Different Channel Structures

The trade-in policy implemented by the state council a few years ago not only benefited the common people, but also stimulated the growth of economy which benefited many enterprises. Since then, trade-in program featuring expanding and stimulating the demand has emerged as one of the means of market operations. Eventually, the relevant subsidy schemes from the government were cancelled gradually because of various reasons. However, to increase their market share and stimulate consumption, some enterprises such as Apple Inc., Lenovo, MAKU, begin to use their own power to implement long-term trade-in strategies nationwide or worldwide. Moreover, some enterprises also implement Trade-in policy on the network channel on account of the rapid development of the network. Given that the selection of autonomous trade-in strategy is affected by the cost of production as well as market structure and enterprises’ relationship, many enterprises are still hesitant in adopting it. Faced with these complex influencing factors, we ask the following questions: How does an enterprise choose market strategy? When should it choose autonomous trade-in strategy? What are the factors that greatly affect the efficiency of enterprise when it adopts autonomous trade-in strategy? Answering these questions is important to such enterprises that are hesitant in adopting autonomous trade-in strategy.In recent years, some scholars have focused on problems of autonomous trade-in, but their researches just paid attention on a single enterprise’s promotion strategy and pricing. Therefore, this article discusses marketing strategy and pricing of an enterprise based on a single traditional channel or dual channel from the supply chain perspective. The effects of marketing factors on demand and supply chain efficiency are then analyzed. Firstly, in view of manufacturer not pursuing trade-in program to avoid risk but retailer carrying out it itself, this article sets up strategy models with consideration of market segmentation and consumer utility to study strategy selection of the retailer and the corresponding optimal decisions of the supply chain. The effects of market segmentation and the old product loss degree(OLD) on strategy selection, decision making, and supply chain efficiency are then analyzed. Secondly, in view of manufacturer investing in the trade-in and retailer being a follower, strategy models are established to discuss the strategy selection, pricing and decision making of supply chain. And then comparing it with retailer carrying out the trade-in, the merits of it are found. Thirdly, given the increasing number of enterprises that adopt trade-in program to seize market on online and offline channels, this paper set up trade-in strategy models from dual-channel selling structure. It discusses different strategic behaviors of manufacturer and supply chain decisions. And then, effects of market segmentation and channel acceptance degree on strategic behaviors, pricing and supply chain efficiency are analyzed.In a word, this article uses game theory to analyze the marketing strategy and the optimal decisions in a perspective of different channel structures and investment promoters. The research finds that the strategy selection of an enterprise is affected by the cost of production, the old customer proportion(OCP), and OLD. The enterprise can benefit from the adoption of the trade-in strategy when OCP and OLD are in a certain area. However, in some cases, the anticipant strategy of the manufacturer is different from the optimal strategy of the retailer. Through numerical examples, the results demonstrate that the profit contributions of new and old customers to supply chain are relied on market factors. Moreover, the decisions of autonomous trade-in strategy in dual channel supply chain are influenced by channel acceptance from different customers.