Product reconstruction, which includes a continuum of activities from renovation to recycling reprocessing, allows companies to high-performance products at lower prices than equivalent new products to sell and at the same time to realize higher profits. Product reconstruction can open new markets for companies in meeting the needs of one or more of the six types of customers: those who need to keep a particular product because it has a technically defined role in their current processes, end-users, the want .. . Read more »

Product reconstruction, which includes a continuum of activities from renovation to recycling reprocessing, allows companies to high-performance products at lower prices than equivalent new products to sell and at the same time to realize higher profits. Product reconstruction can open new markets for companies in meeting the needs of one or more of the six types of customers: those who need to keep a particular product because it has a technically defined role in their current processes, end-users, the want to avoid the need to respecify, reapprove or certify a product; customers to make the low utilization of new equipment, those who want to continue to set a product that was by the original manufacturer, people who just want to get to the life the products used, whether or not adjusted expand, and customers who are interested in environmentally friendly products. In addition, serves a particular market, the company must also have certain types of expertise. To be successful in recycling, for example, it needs to be familiar with the manufacturing process, which originally created the product is capable of extensive and time-consuming marketing activities (in order to compete effectively against the many other companies in this make low-barrier-to-entry industry) and be ready to specialize, because certain materials vary greatly in their complexity, time, predictability, capital and labor characteristics and costs.
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from
John A. Pearce
Source: MIT Sloan Management Review
9 sides.
Release Date: 1 April 2009. Prod #: SMR313-PDF-ENG
The Profit-Making Allure of Product Reconstruction HBR case solution

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