Analyzing the Customer Co-design System Providing Both a Standard and Co-design Product

Customers work directly with co-design systems in order to design and purchase their own custom products. In this paper, we build an analytical model which analyzes the impact of co-design system capability on demand patterns and profit outcomes. There are three cases, providing a standard product alone, providing a customized product alone, and providing both products. When providing both products, customers are allowed to purchase one of the two products and then divided into two groups. One group tries to purchase the customized product first, and the other group first tries to buy the standard product. Some of the first group successfully purchase the customized product, but others abandon the co-design tasks midway through and then try to buy the standard product. Some of the second group buy the standard product successfully, but others fail to purchase it and then try to purchase the customized product. Taking these practical situations into consideration, we build analytical models and analyze them to offer the firm a better strategy for their co-design business. First, providing both standard and customized products leads to a higher profit than offering customized product alone. Second, we suggest that the firm benefits the most greatly from providing as wide a co-design scope as possible, which best maximizes their profits. However, the firm might experience decreases in profits in the midst of widening the scope level. After enduring this difficult growth period and subsequently making further efforts to widen the scope, the profit eventually begins to grow.