Consider The Second-hand Market And Trade-in Business Strategy Selection Research

Economic progress and rapid development of science and technology have shortened the product replacement cycle,and the disorderly disposal of a large number of waste and idle products has further aggravated the problems of resource waste and environmental pollution.In order to develop a circular economy and build a resource-recycling society,China encourages enterprises to cultivate new business models,improve the recycling and treatment system of waste products,and improve consumers’ green and environmentally friendly consumption concepts.With the joint efforts of all parties in society,the sustainable supply chain operation model continues to innovate and change,and the second-hand market and trade-in are gradually emerging and flourishing.However,in today’s increasingly fierce business competition,second-hand product trading brings new challenges to the implementation of trade-in,which not only means direct competition between old products and new products,but also the demand for trade-in may also be eroded.Therefore,based on the competitive relationship between the second-hand market and trade-in,this paper will study the impact of the second-hand market on product pricing,demand and profit,and discuss the optimal decision-making problems of enterprises in the two second-hand market trading modes,so as to provide certain management enlightenment and suggestions for enterprises.Based on the above background,this paper combines the existing literature and actual situation to segment consumers,uses utility function to characterize consumer purchasing behavior,establishes profit maximization models,and solves to obtain optimal decisions.For the situation of no second-hand transaction rate,firstly,construct the trade-in model of enterprises when there is a second-hand market or not,compare the two to obtain the impact of the second-hand market on trade-in,secondly,introduce remanufacturing on the basis of the trade-in model when there is a second-hand market,and analyze whether remanufacturing can reduce the negative impact of the second-hand market.For the existence of second-hand transaction rates,two models of trade-in when there is a third-party second-hand trading platform and when the enterprise builds its own second-hand trading platform are constructed respectively,and the impact of the second-hand transaction rate on the pricing,demand and profit is analyzed,and whether the enterprise should build its own second-hand trading platform is judged.This paper draws the following conclusions:(1)When there is no direct competition between the second-hand market and trade-in,the second-hand market will not affect trade-in,and when there is a direct competition between the two,the existence of the second-hand market will help the enterprise to get more profits from the trade-in,but the profit increment cannot make up for the profit reduction generated when selling new products,so the second-hand market hurts the total profit of the enterprise significantly.(2)In the absence of second-hand transaction rates,first of all,the introduction of remanufacturing will not change the optimal pricing of new products,but will reduce the demand for new products,and will also promote consumers to update old products to a certain extent.Secondly,the remanufacturing can reduce the transaction price and transaction quantity of the second-hand market,indicating that remanufacturing can inhibit second-hand transactions.Finally,only when the remanufacturing cost and the residual value of the waste product are low,the company implements the full remanufacturing strategy,or when the remanufacturing cost is moderate,the company implements the partial remanufacturing strategy,the remanufacturing strategy can reduce the profit loss caused by the second-hand market.(3)In the case of second-hand transaction rates,the second-hand trading platform built by the enterprise can make more profits and can create more second-hand transaction income than the third-party second-hand trading platform,but the pricing of new products,the actual payment for trade-in and the transaction price of second-hand products when the enterprise builds the second-hand trading platform will be higher than the actual price when the third-party establishes the second-hand trading platform,which will seriously damage the interests of consumers.