Analysis on trade-in strategy of manufacturers competing with informal recycling enterprises

Considering the competition of informal recycling enterprises in the waste and old product recycling market, this paper analyzes the trade-in strategy of manufacturers and discusses the effect of implementing trade-in on the competition in the recycling market by comparing changes in recycling market shares, recycling prices, and profits before and after the implementation of a trade-in program. Without a trade-in program, manufacturers are always in an inferior position in the competition with informal recycling enterprises in the recycling market. With the implementation of a trade-in program, the recycling prices provided by manufacturers and shares of recycling market of manufacturers not only increase with the earnings of processing a unit old product, but also increase with the total profit margin of sales of new products and recycling of old products. The implementation of a trade-in program can enhance the competitiveness of manufacturers in their competition with informal recycling enterprises, causing manufacturers to obtain more shares and profits in the recycling market, and promoting the healthy and sustainable development of manufacturers in the sale of new products and the recycling of old products.

Automated summary

This paper analyzes the impact of the trade-in strategy of manufacturers on competition in the recycling market. It finds that without a trade-in program, manufacturers are at a disadvantage compared to informal recycling enterprises. However, with the implementation of a trade-in program, manufacturers can increase their recycling prices and market shares, leading to more profits. This enhances their competitiveness and promotes the sustainable development of manufacturers in both new product sales and old product recycling.