Sharing of Durable Goods: Business Models for Original Equipment Manufacturers

Blaettchen, Philippe; Taneri, Niyazi; Hasija, Sameer

doi:10.2139/ssrn.3254790

Cited by 4 publications

(3 citation statements)

References 51 publications

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“…Should a manufacturer sidestep the sharing market by offering products for short-term rental instead of (or in addition to) selling them outright? These and related questions are explored in Abhishek et al (2019), Blaettchen et al (2018), Benjaafar and Pourghannad (2019), Jiang and Tian (2018), and Tian and Jiang (2018). The question of whether a manufacturer should offer its products for short-term rental (or, more generally, under a pay-per-use revenue model) is often referred to as servicization and is explored in Agrawal and Bellos (2017), Bellos et al (2017), and Benjaafar et al (2019c).…”

Section: Peer-to-peer Resource Sharingmentioning

confidence: 99%

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Benjaafar

2020

M&SOM

199

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Please scroll down for article-it is on subsequent pagesWith 12,500 members from nearly 90 countries, INFORMS is the largest international association of operations research (O.R.) and analytics professionals and students. INFORMS provides unique networking and learning opportunities for individual professionals, and organizations of all types and sizes, to better understand and use O.R. and analytics tools and methods to transform strategic visions and achieve better outcomes. For more information on INFORMS, its publications, membership, or meetings visit Abstract. The sharing economy, a term we use to refer to business models built around ondemand access to products and services mediated by online platforms that match many small suppliers or service providers to many small buyers, has emerged as an important area of study in operations management. We first describe three "canonical" applications that have garnered much attention from the operations management community. We use these applications to highlight distinguishing features of sharing economy business models and to point out research questions that are new. Then we draw connections between classical operations management theory and models and those that have been used to study sharing economy applications. We do so to put in context some of the recent work on the sharing economy and to showcase the underlying modeling toolkit and identify opportunities for future research.

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Section: Peer-to-peer Resource Sharingmentioning

confidence: 99%

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Benjaafar

2020

M&SOM

199

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Section: Peer-to-peer Resource Sharingmentioning

confidence: 99%

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Benjaafar

2019

SSRN Journal

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The sharing economy, a term we use to refer to business models built around ondemand access to products and services mediated by online platforms that match many small suppliers or service providers to many small buyers, has emerged as an important area of study in operations management. We first describe three "canonical" applications that have garnered much attention from the operations management community. We use these applications to highlight distinguishing features of sharing economy business models and to point out research questions that are new. Then we draw connections between classical operations management theory and models and those that have been used to study sharing economy applications. We do so to put in context some of the recent work on the sharing economy and to showcase the underlying modeling toolkit and identify opportunities for future research.

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“…Abhishek, Guajardo, and Zhang (2019) compare monopoly selling and rental with a corporate-sponsored peer-to-peer market and find that when the usage rates are low, an OEM who manufactures durable goods prefers to offer both purchase and rental options. Additionally, from the perspective of an OEM manufacturing durable goods, Blaettchen, Hasija, and Taneri (2018) emphasize economic factors, such as breakdowns and after-sales services, and investigate whether the OEM should continue the sales model with after-sales services or move toward an access-based consumption model of servicization. Furthermore, Razeghian and Weber (2019) examine a manufacturer's optimal strategy for offering products, be it for sale, rent, or a combination thereof.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and capacity allocation strategies: Implications for manufacturers with product sharing

Dai

2020

Naval Research Logistics

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Emerging sharing modes, like the consumer‐to‐consumer (C2C) sharing of Uber and the business‐to‐consumer (B2C) sharing of GoFun, have considerably affected the retailing markets of traditional manufacturers, who are motivated to consider product sharing when making pricing and capacity decisions, particularly electric car manufacturers with limited capacity. In this paper, we examine the equilibrium pricing for a capacity‐constrained manufacturer under various sharing modes and further analyze the impact of capacity constraint on the manufacturer's sharing mode selection as well as equilibrium outcomes. We find that manufacturers with low‐cost products prefer B2C sharing while those with high‐cost products prefer C2C sharing except when the sharing price is moderate. However, limited capacity motivates manufacturers to enter into the B2C sharing under a relatively low sharing price, and raise the total usage level by sharing high‐cost products. We also show that the equilibrium capacity allocated to the sharing market with low‐cost products first increases and then decreases. Finally, we find that sharing low‐cost products with a high limited capacity leads to a lower retail price under B2C sharing, which creates a win‐win situation for both the manufacturer and consumers. However, sharing high‐cost products with a low limited capacity creates a win‐lose situation for them.

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Sharing of Durable Goods: Business Models for Original Equipment Manufacturers

Cited by 4 publications

References 51 publications

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?

Pricing and capacity allocation strategies: Implications for manufacturers with product sharing

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