Research On The Price Competition Strategies Of Remanufactured Products

Because the undue pursuit of economic profit unilaterally in traditional production mode, the problems of ecological environment pollution and resource waste were neglected. With aggravating contradictions of economic development and shortage of resource, destruction of environment, people has begun to seek an economical development mode that can coordinate the economic efficiency with ecological efficiency. As a kind of social economic activities that can reform the traditional production mode and life style, remanufacturing has important influence on saving energy and material, positioning environmental. Though remanufacturing has significant efficiency in economy, society and ecology, the implementation of its potential comprehensive efficiency depends on the identity and purchase with the remanufactured products. The spatiality of the remanufactured products determined the fierce price competition from new products.Under this background, the study contains a theoretical and empirical examination of the price competition, it analysis the influencing factors of price of remanufactured product. Using the price competition of game theory and research on the equilibrium price and equilibrium profit, describe the price competition strategies of remanufacturing enterprise. In this article, the literatures related to remanufacturing, remanufactured products and price competition of remanufacturing market were reviewed. Then, probing into the gaps in the previous knowledge according to defect. Research on the following problems:1. Compare with the price influencing factors of traditional products; the study locate the market environment of remanufactured products, analysis the effect of product cost, custom preference and policies and measures.2. Defined the price competition between remanufactured product and new product as duopoly competition, the concept of Nash Equilibrium was introduced to analysis the pricing model with price difference. Set remanufactured steyr engine as an example, give a reasonable price mode of remanufactured engine.3. Some suggestions are put forward to describe the price competition strategies of remanufactured product: reasonable price to avoid the excessive competition; implement product differentiation to avoid face-to-face competition; promote popularity of product, set up brand consciousness and good social image; within the enterprise, reduced manufacturing costs through the positive development of advanced manufacturing technology; promoting the use of sevicizing; carry out"stealth price war"and cooperation with OEM to get"win-win".It can be concluded from the theoretical analysis and case study that market environment, product cost, custom preference and policies and measures have great effect on the price of remanufactured products. Through the reasonable choice of price competition strategies, the enterprise can gain enough living space and development space.