Manufacturer’s Decisions for Sharing Products: Challenges, Opportunities and Optimal Strategic Plan

Anupam Keshari () and Manoj Kumar Tiwari
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Anupam Keshari: National Institute of Industrial Engineering
Manoj Kumar Tiwari: National Institute of Industrial Engineering

A chapter in Advances in Digital Manufacturing Systems, 2023, pp 135-152 from Springer

Abstract: Abstract Mobile use for prompt and effective communication and businesses with the online platform are proliferating with a massive possibility for sharing product business growth. Monopolistic products that mostly have high retail prices are opening up lucrative business possibilities for product sharing. Manufacturers are readily accepting product sharing businesses (B2C business) if the product is profitable as a sharing product. Along with their retail business, the manufacturer launches some products, which will be rented out to customers, using the manufacturer's product sharing digital platforms. There are many analytical fronts, i.e., total market size, amount of product to launch as the sharing product, product's price decision, long-term effect on the products retail market, third party product sharing businesses, etc. Manufacturer's rental business may cannibalize their retail sales, and the customers’ interest can be inclined towards the use of the rental product. Manufacturers need to have an optimal decision for entering in product sharing market. A basic mathematical/analytical model is reported that can be utilized to get insights and evaluate the strategic plan of entering in product sharing business. Such product sharing problems are demonstrated with simulated case studies with a stepwise approach to get the optimal decisions & insights. Although the manufacturer's entry into the rental business brings economic benefits in some situations only, it always contributes to environmental benefits and improves the business ecosystem as a whole.

Keywords: Digital manufacturing systems; Product sharing; Manufacturer’s optimal decision; Rental products; Digital platforms; Emerging businesses environments (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-981-19-7071-9_7

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