Manufacturer's Strategy Research Articles

Manufacturers’ digital transformation under carbon cap-and-trade policy: investment strategy and environmental impact

Digital transformation (DX) has become an important strategy for the sustainable development of traditional manufacturers. However, the impact of DX on the environment is still inconclusive, and whether it is beneficial for manufacturers to reduce total carbon emissions remains to be examined. Therefore, based on the carbon cap-and-trade policy, this paper employs a game-theoretic model to study the DX strategies of duopolistic manufacturers and to explore the influence of low-carbon policy on these strategies. Additionally, we compare the total carbon emissions before and after DX implementation by manufacturers, discussing the environmental implications of DX. And we innovatively segment the market into two scenarios: one with a low digital technology level and the other with a high digital technology level. Our research demonstrates that the appropriate DX strategy can not only boost manufacturers’ profits but also enhance their ability to withstand external shocks. In the scenario with a high level of digital technology, manufacturers can achieve greater profits and are more likely to reduce total carbon emissions, resulting in a win-win situation. Sensitivity analysis reveals that an increase in carbon trading prices encourages manufacturers to ramp up their investments, ultimately driving comprehensive DX. This study not only provides decision-making guidance for the DX of manufacturers, but also provides a direction for the government to promote DX and achieve carbon neutralization.

User requirements analysis of new energy vehicles based on improved Kano model

The ever-changing market demand accelerates the iterative upgrading of new energy vehicles, making understanding user requirements crucial for optimizing product strategies. However, the imbalance in reviews reduces the accuracy of user requirements analysis, which may mislead the purchasing intentions of potential consumers and the product development strategies of manufacturers. To address this, this study develops a BERT-TCBAD-Kano-based requirements analysis method. First, a sentiment analysis method is used to identify user preferences in online reviews. Second, the Text Classification Based on Attribute Dictionary (TCBAD) is proposed to categorize online complaints of users. Finally, user satisfaction and concern are calculated based on preference identification and complaint classification results. User requirements are prioritized based on the idea of the Kano model. Based on the online data of a new energy vehicle, 342 attribute words and 10 user requirements are extracted. The results show that the proposed method improves prediction accuracy by 30 % compared to the traditional Kano model. The method provides significant decision-making support for user-centered product development.

Agency or reselling: optimal return policy in E-commerce retail systems under cap-and-trade regulation

In recent years, the government has issued regulations on environmental protection, carbon emissions, and trading. Enterprises’ environmental awareness has increased, and the operational strategies of manufacturers and platforms have also been affected by environmental regulations. This study considers the interactive effects of agency and reselling contracts between manufacturers and platforms and the cap-and-trade regulation on return policy. Our findings reveal that government-imposed caps on total carbon emissions consistently influence optimal pricing and profits under cap-and-trade regulation, regardless of the presence of a return policy. Additionally, the emission intensity of manufacturers plays a pivotal role in determining the return policy. High manufacturer emission intensity leads decision-makers to provide return services only under specific conditions. Moreover, manufacturers opt for agency contracts when faced with low commission rates, and this threshold is intricately linked to carbon emission intensity, the cap, and the return rate. The government’s ability to adjust the cap enables control over changes in manufacturers’ profits and output, thereby influencing industrial structure and carbon emissions. Manufacturers strategically choose return policies, considering factors such as carbon intensity, return rate, and commission rate. Remarkably, even under cap-and-trade regulations, manufacturers remain inclined to offer returns under optimal conditions.

Complexity Analysis of the Interaction between Government Carbon Quota Mechanism and Manufacturers’ Emission Reduction Strategies under Carbon Cap-and-Trade Mechanism

Based on different carbon quota trading mechanisms, the price and emission reduction strategies of oligopoly manufacturers in the low-carbon market and the government carbon quota mechanism are considered. A dynamic game evolution model of the two oligopoly manufacturers with competitive relations is established. The stability of the equilibrium point of the game model, the price adjustment speed of the decision variable, the impact of carbon emission reduction investment, and the government carbon quota on the system are discussed. Through nonlinear dynamics research, it is found that the advantage of the grandfathering method is that it is conducive to maintaining market stability when the government’s carbon quota decision changes; the advantage of the benchmarking method is that when manufacturers formulate price adjustment strategies, the benchmarking method carbon quota mechanism has a stronger stability range for the market, the manufacturer’s profit price adjustment speed is positively correlated, and the government carbon quota decision and emission reduction investment are also positively correlated. Decision makers need to choose appropriate carbon quota mechanisms and manufacturers’ emission reduction strategies according to actual market changes to maintain supply chain stability.

Low-Carbon Supply Chain Decision-Making and CSR Strategy Evolution Analysis Considering Heterogeneous Consumer Preferences

Decision-making regarding the low-carbon supply chain, considering corporate social responsibility (CSR) and the heterogeneous preferences of consumers, has become an urgent topic to be explored. This paper explores the decision-making problem of a low-carbon supply chain considering the heterogeneous preferences of consumers under different CSR situations, analyzes the influence of important parameters on each equilibrium solution, compares the size relationship of each equilibrium solution under different CSR situations, and verifies the conclusions obtained through numerical simulation. Then, based on the obtained equilibrium solution, a CSR evolutionary game model of the low-carbon supply chain is constructed, and the evolutionary stability strategies of the two sides on the CSR game are solved. Finally, the evolutionary trajectory of the game system is intuitively presented using a simulation method, and the influence of the main parameters on the evolutionary trends of the two sides is analyzed. The findings are as follows: (1) When both manufacturers and retailers undertake CSR, the retail price and wholesale price are their lowest, while carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility are the highest. (2) When a company undertakes CSR, carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility all increase with the increase in the CSR degree of the company and the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers. (3) The evolutionary stability strategy for both manufacturers and retailers is to undertake CSR. In addition, the initial proportion of manufacturers and retailers that undertake CSR, the low-carbon preference of low-carbon consumers, and the increase in the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers can encourage both members of the supply chain to undertake CSR.

Optimizing Online Channels: Exploring the Interplay of E-Commerce in Customer Journey of Smartphone & Gadget Retail

The rise of e-commerce has transformed the global retail industry, including the smartphone and gadget sector. In Indonesia, while online shopping has become more popular due to its convenience, smartphone brands still face challenges. Despite the growth of online platforms, many customers prefer shopping in physical stores, especially after the pandemic. This research aims to understand what drives consumers to shop online for smartphones and gadgets, and to offer insights and strategies for both smartphone manufacturers and e-commerce platforms to boost their online presence and attract more customers. The study addresses key questions about consumer behavior: What motivates people to buy smartphones and gadgets online rather than in-store? How do they perceive their online shopping experience, and what factors affect their satisfaction? What obstacles do they face when shopping online, and how do they overcome them? How do they react to personalized marketing and recommendations? And what drives their loyalty and repeat purchases in the online market? By using the Customer Decision Journey, Marketing Technology, and Porter’s Five Forces analysis, the research identifies important factors like delivery, promotions, store information, and ease of finding product details. The study will provide actionable business solutions and recommendations to help smartphone manufacturers and e-commerce platforms tackle challenges and improve their online market strategies.

The influence of manufacturer encroachment on the supply chain: the conditional role of traditional retailer retail service investment

PurposeThis paper investigates the dual interactive effects of manufacturer encroachment on the supply chain and retailer provision of retail services.Design/methodology/approachConsider a supply chain dominated by manufacturers, retailers, and e-commerce platforms, with the manufacturers selling the same product online and offline. Utilizing Stackelberg’s game theory, examples of wholesale and retail prices and profits of participants in the supply chain under different channels are analyzed. An effective encroachment strategy for manufacturers facing different retail service investment strategies of traditional retailers is given.FindingsWhen traditional retailers do not invest in retail services, they will lose more profit due to competition with the manufacturer. At this time, the retailer does not want the manufacturer to encroach. The traditional retailer’s investment in retail services will enhance its and the manufacturer’s profits, incentivizing the manufacturer to pursue an aggressive expansion strategy.Originality/value(1) Considers a situation where the selling efficiency of the manufacturer is lower than that of the traditional retailer. (2) The interaction between traditional retailers’ retail service investment strategies and manufacturers’ encroachment strategies is investigated where the manufacturer is the dominant player. The three modes of online direct sales, resale, and third-party platform agency are compared to provide a basis for decision-making on different types of manufacturers’ encroachment. (3) Offline retail services not only directly increase sales in the offline market but also indirectly have a negative effect on the online market.

Driving the Transport Electrification: Exploring Stakeholders’ Perceptions and Actions in the Indonesian Automotive Industry Transition to Electric Mobility

The rise of all types of electric vehicles (xEVs) is reshaping the global automotive sector, marking a new era of electric mobility (eMobility). While existing research predominantly explores the transition towards eMobility from the perspectives of automakers, governments, and users, a notable gap exists regarding the role of internal combustion engine (ICE) component manufacturers. This research aims to examine the transformative journey of the Indonesian automotive industry, specifically focusing on the strategic responses of Indonesian ICE component manufacturers towards eMobility. This study employs a multi-level perspective (MLP) approach through 12 semi-structured interviews with stakeholders representing government bodies, associations, automakers, academia, startups, and ICE component manufacturers. This research sheds light on stakeholders’ perceptions and actions in the transition to eMobility. The findings reveal various factors influencing transition, including current low xEV demand, companies’ perceptions of xEVs, huge investments, changes in the supply chain, technological capabilities, and government policies. This research provides an overview of the strategies for ICE component manufacturers, along with their risks and advantages. This research also recommends two policies for the Indonesian government: a gradual transition and more support for local xEV and component manufacturing.

Identifying the influence of obsolescence risk and health beliefs in fitness wearable healthcare technology

ABSTRACT This study aimed to examine factors influencing the adoption of fitness wearable technologies (FWTs) by extending the Unified Theory of Acceptance and Use of Technology (UTAUT2). A survey was conducted with 574 fitness wearable users in India to test a conceptual Fitness Wearable Adoption Model (FWAM) incorporating additional constructs of obsolescence risk, health belief, and perceived accuracy alongside UTAUT2 variables. Structural equation modeling revealed performance expectancy, effort expectancy, social influence, hedonic motivation, price value, health belief, and obsolescence risk positively affected adoption intentions, while perceived security had no effect. Perceived accuracy mediated the impact of performance expectancy, while price value mediated the relationship between obsolescence risk and intentions. The research makes key contributions by adapting UTAUT2 to a new context, integrating additional adoption factors, identifying mediating mechanisms, and revealing moderating effects of age. Findings provide valuable insights into consumer acceptance of fitness wearables that can inform strategies for manufacturers, marketers, and health practitioners to promote adoption. A major focus of the investigation is to develop strategies for increasing the adoption of wrist-worn fitness technology that provides an opportunity for fitness wearable technology manufacturers to strengthen relationships with older age groups through effective communication techniques.

Price and durability decisions on successive generations of electronic durable goods under incremental innovation

ABSTRACT This research explores the decision-making processes of manufacturers regarding pricing and durability of electronic durable products across successive generations. By constructing a two-stage model, we derived the optimal pricing strategy and production strategy for manufacturers. Specifically, we considered the impact of price reductions on older products and pre-launch activities for new products on consumer behavior, especially that of strategic consumers. An interesting finding is that traditional sales strategies of discounting older products do not increase revenue, but rather harm overall profits. Our results provide guidance for manufacturers of electronic durable goods in formulating strategies for product upgrades and new product sales strategies.

Optimal Maintenance Service Strategy of Service-Oriented Aviation Manufacturers for Two-Stage Leased System Under Capacity Limits

Optimal Maintenance Service Strategy of Service-Oriented Aviation Manufacturers for Two-Stage Leased System Under Capacity Limits

Capability configurations for successful advanced servitization

PurposeAdvanced servitization is the process that involves the combination of different services that facilitate both the use of a product and customer operations. Although servitization has emerged as a frequent strategy for manufacturers to differentiate themselves from the competition, its implementation can pose major challenges and may not always result in superior firm performance. Consequently, successful advanced servitization may require specific organizational capabilities to unleash performance-enhancing effects. To date, little is known about how to effectively configure advanced servitization to achieve such performance gains.Design/methodology/approachAdopting a fit theory perspective and using a configurational approach, we examine the interplay between servitization, organizational capabilities, contextual factors and financial performance. Specifically, we focus on advanced servitization and assess its necessity and sufficiency for achieving high financial performance. In addition, we study how the alignment of servitization approaches with organizational capabilities and contextual factors affects financial performance. We analyze data from 151 manufacturers in an emerging economy using fuzzy-set Qualitative Comparative Analysis (fsQCA).FindingsOur findings indicate that advanced servitization is sufficient, but not necessary for high financial performance. In addition, the findings indicate that the alignment of servitization approaches with specific service-related capabilities unfolds complementarity effects that contribute to achieving high financial performance for manufacturers with different firm size and competitive intensity. The findings indicate three configurations that may serve as templates for managers to orchestrate resource allocation and successfully deploy advanced servitization.Originality/valueOur study advances the servitization literature by further illuminating advanced servitization as a more complex servitization process. We show how high-performing manufacturers align servitization and organizational capabilities across different contexts, and thus provide design choices for managers in configuring servitization.

Distribution shift detection for the postmarket surveillance of medical AI algorithms: a retrospective simulation study

Distribution shifts remain a problem for the safe application of regulated medical AI systems, and may impact their real-world performance if undetected. Postmarket shifts can occur for example if algorithms developed on data from various acquisition settings and a heterogeneous population are predominantly applied in hospitals with lower quality data acquisition or other centre-specific acquisition factors, or where some ethnicities are over-represented. Therefore, distribution shift detection could be important for monitoring AI-based medical products during postmarket surveillance. We implemented and evaluated three deep-learning based shift detection techniques (classifier-based, deep kernel, and multiple univariate kolmogorov-smirnov tests) on simulated shifts in a dataset of 130’486 retinal images. We trained a deep learning classifier for diabetic retinopathy grading. We then simulated population shifts by changing the prevalence of patients’ sex, ethnicity, and co-morbidities, and example acquisition shifts by changes in image quality. We observed classification subgroup performance disparities w.r.t. image quality, patient sex, ethnicity and co-morbidity presence. The sensitivity at detecting referable diabetic retinopathy ranged from 0.50 to 0.79 for different ethnicities. This motivates the need for detecting shifts after deployment. Classifier-based tests performed best overall, with perfect detection rates for quality and co-morbidity subgroup shifts at a sample size of 1000. It was the only method to detect shifts in patient sex, but required large sample sizes (>30′000\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$> 30^{\\prime} 000$$\\end{document}). All methods identified easier-to-detect out-of-distribution shifts with small (≤300) sample sizes. We conclude that effective tools exist for detecting clinically relevant distribution shifts. In particular classifier-based tests can be easily implemented components in the post-market surveillance strategy of medical device manufacturers.

Research on Channel Encroachment Strategy and Contract Design of Manufacturers Based on Live Broadcast

This article constructs supply chain models after the manufacturer's live streaming channel encroachment. Through demand function models and Stackelberg game theory, the optimal decisions of each member in the supply chain are solved using reverse induction method. The impact of various parameters on invasion strategies such as quality investment, channel pricing, and profits of all parties is analyzed. The results indicate that when consumers have a high level of preference for the sales channels opened by manufacturers, manufacturers can gain higher profits by inviting internet celebrities to live stream and promote sales through channel encroachment. When the potential demand scale of manufacturers is low and the proportion of anchor sharing is higher, manufacturers should reduce quality costs by lowering the level of quality investment. When the potential demand scale of manufacturers is high, they should reduce product returns by increasing the quality investment level and incentivize broadcasters by raising live broadcast prices.

An improved IPA approach driven by big data and its application to customer satisfaction research of energy-saving appliance

Against the backdrop of increasing global demand for reducing greenhouse gas emissions, promoting the use of energy-saving and environmentally friendly products has become a crucial aspect of low-carbon economic development. Customer satisfaction plays a vital role in the promotion of these products. To address the challenges of dealing with big data in the conventional customer satisfaction analysis tool, Importance Performance Analysis (IPA), a machine learning-based method is proposed to improve IPA. Firstly, the Latent Dirichlet Allocation (LDA) model is used to capture users’ opinions on different product topics. Then, the Support Vector Machine (SVM) and Random Forest (RF) algorithms are employed respectively to assess the satisfaction and importance of product attributes, enabling an objective measurement of customer satisfaction and adapting to the current trend of big data. The proposed method is applied to the analysis of water heater satisfaction on the JD platform, obtaining satisfaction levels for 10 topics. The research findings demonstrate that the improved IPA method based on SVM-RF effectively explores customer satisfaction and can provide some improvement strategies for platform managers and manufacturers.

Innovation Strategies and Competitive Advantage of Ceramic Manufacturers in Kenya

Manufacturing firms are crucial for Kenya's economic growth and industrialization efforts aligned with Vision 2030 objectives. However, recent trends show a decline in competitive advantage for these firms, reflected in decreasing market share, customer loyalty, and sales growth. To address this, firms have adopted innovative strategies like process, product, and technology innovation to enhance their competitive edge. The decline in competitive advantage poses risks to profitability, market position, and long-term sustainability, underscoring the importance of investigating the impact of innovation strategies on the competitive advantage of ceramic manufacturers in Kenya. Therefore, the purpose of the study is to evaluate the relationship between innovation strategies and the competitive advantage of ceramic manufacturers in Kenya. The purpose of the study was to ascertain how Kenyan ceramic producers' competitive advantage was impacted by innovation in technology, products, and processes. The study used a desktop research approach, and theme analysis was used to examine the data. The study discovered that Kenyan ceramic producers' competitive edge stems from process innovation. Furthermore, the results showed that Kenyan ceramic producers' competitive advantage stems from product innovation. The results also showed the impact of technological innovation on Kenyan ceramic producers' competitive edge. The study concluded that Kenyan ceramic producers had a competitive edge due to process, product, and technological innovation. Manufacturers of ceramics must take a whole-hearted commitment to innovation, covering all facets such as procedures, goods, and technology.

Online customized strategy for manufacturers to counter showrooming behavior in a dual-channel supply chain

Abstract Accepted by: M. Zied Babai Showrooming refers to a behavior of consumer transferring from offline stores to online purchasing. Consumers’ showrooming behavior would affect not only the offline stores but also manufacturers in the long run. This study aims at putting forward an online customized strategy offered by a manufacturer to defeat the negative of showrooming in the context of a dual-channel supply chain where a manufacturer sells products online to consumers via a direct channel and wholesales products to an offline retailer, then the retailer sells products via an offline channel. Based on game theory and backward induction, optimal pricing decisions for the manufacturer and the retailer are established. It shows that consumers’ showrooming behavior decreases the selling prices and increases sales volumes in both the online direct channel and the offline channel. As further revealed, showrooming behavior would hurt the retailer under certain conditions and always damage the manufacturer. To mitigate the negative effects of showrooming, an online customized strategy is developed for the manufacturer. That is, the manufacturer would provide standard and customized products for online channel, allowing offline channel to sell only standard products. According to the results, online customized strategy would always damage the interests of the retailer, while customized strategy increases the profit of the manufacturer and increases the social welfare of the supply chain under certain circumstances.

A study of production outsourcing strategies of dual oligopoly manufacturers based on quality investments

Introduction: Self-production and outsourcing are two important production strategies for manufacturers, and the production capacity and investment capacity of manufacturers and suppliers play a decisive role in the quality of products. This study aims to analyze the manufacturer’s best production strategy and the drivers of outsourcing in the context of quality.Methods: This study constructs production outsourcing game models for duopoly manufacturers, examines the trade-offs between self-production and outsourcing when suppliers have the ability to invest in quality, explores the requirements and implications of outsourcing and compares the differences between “one-to-one” and “one-to-many” outsourcing structures.Results: First, outsourcing can reduce the level of product quality and that a necessary condition for manufacturers’ outsourcing is a strong advantage in the supplier’s production costs. Second, duopoly manufacturers may face a prisoner’s dilemma as a result of outsourcing. Finally, compared to two independent suppliers, outsourcing to a common supplier can increase the level of product quality by exploiting the centralization effect and increase the firm’s profits when the market’s competition intensity is low.Conclusion: First, the production strategy balance of duopoly manufacturers is closely related to the outsourcing structure, production efficiency and investment efficiency. Second, duopoly manufacturers choose outsourcing may fall into the prisoner’s dilemma, and outsourcing has the risk of quality reduction.

Bundling products and service on influencer channels

This study investigates the optimal service pricing strategies for manufacturers within the burgeoning field of influencer live-streaming marketing. By examining a dynamic where manufacturers collaborate with social media influencers, the research evaluates the efficacy of bundling products and services versus separate pricing under varying conditions. The study uncovers that the gap between the two service pricing models will increase as the service cost increases. Moreover, the lower the service cost, the more obvious the relative advantage of the bundling model. That is, bundling is most beneficial when service costs are low, whereas separate pricing becomes advantageous as service costs escalate. In addition, the decrease in the rate of product defects can lead to an increase in the relative advantage of the bundling model. Intriguingly, the optimal promotional approach for influencers shifts in response to these pricing strategies, favoring a combined product-service promotion when services are priced separately. The study further reveals a direct correlation between product defect rates and profitability, especially under separate pricing scenarios. These insights offer valuable guidance for manufacturers and influencers in strategizing their offerings and promotions in the digital marketplace.

Outsourcing or not? OEM's entry decision considering brand spillover effect

PurposeIn this paper, the authors study the entry and outsourcing strategies of manufacturer while considering the brand spillover effect resulting from outsourcing. The supply chain comprises two manufacturers: one being the entrant with a strong brand, and the other as the incumbent with a weak brand. The entrant decides whether and how to enter the market.Design/methodology/approachStackelberg game is applied to study the optimal strategies for the manufacturers. This paper conducts a comparative analysis on four situations, yielding conclusions and managerial insights.FindingsThe results show that, for the entrant, there is no need to worry about the brand spillover effect in the outsourcing process, which is very interesting and counterintuitive. To get further, the authors find the reason: The spillover effect causes the entrant’s equilibrium retail price to grow faster than the wholesale price. They also prove that a stronger brand effect empowers the entrant to challenge industry barriers, while the impact of the brand spillover effect is the opposite. For the incumbent who acts as the weak party in this issue, it is demonstrated that the optimal choice is to continue selling when facing the encroachment and outsourcing call from the entrant.Originality/valueDiffering from previous studies, the authors notice the brand spillover effect caused by outsourcing when studying company’s entry strategy. They further divide the brand effect into two parts, one of which does not exhibit a spillover.