This paper introduces outside competitive factors to remanufacturing system of closed-loop supply chain. The
decision-making of original equipment manufacturer(OEM) remanufacturing and the impact on outside competition and
inside competition are studied. In inside competitive environment, the conditions that OEM enters the remanufacturing field
are studied by analyzing the decision of OEM. The decision boundary on when competitors can enter is given in outside
competitive environment. Study results show that the remanufacturing strategy of manufacturers is not only a profit behavior,
but also a prevention strategy, and it can prevent competitors from entering under certain conditions. The decisions of
competitors depend on product competitiveness and manufactures’ recovery rate.