So what if remanufacturing cannibalizes my new product sales?

by Luk Van Wassenhove, V. Guide, Atalay Atasu



Remanufactured products do not always cannibalize new product sales. To minimize cannibalization and create additional profits, managers should develop an understanding of how consumers value remanufactured products and should utilize pricing strategies, the supply of remanufacturable products, and the competition. This is not a static decision and should be re-evaluated over the entire product lifecycle. Managers have a responsibility to maximize profits for the firm and this is not always equivalent to maximizing new product sales. A portfolio that includes remanufactured products can make it possible to reach additional market segments and help block competition from new low-end products or third-party remanufacturers.

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