<p>Remanufacturing provides a solution for effectively reusing end-of-life products and offers opportunities for sustainable development in the manufacturing industry. However, for original equipment manufacturers (OEMs), investing in green efforts to increase product remanufacturability may expose them to competition from independent remanufacturers (IRs). Whether OEMs should focus on new product production or extend their business into remanufacturing is a topic worth exploring. In this paper, we use a two-stage model to investigate an OEM's remanufacturing strategy in the context of competition from one IR. In particular, we highlight how consumer preference and an OEM's green innovation capability affect the OEM's remanufacturing decisions. The results show that in a market with low consumer preference, the optimal strategy for the OEM is to produce only new products, as the very limited demand restricts the potential for remanufacturing. In a market with moderate consumer preference, the OEM will face a competitive threat from the IR, and whether to engage in remanufacturing depends on its green innovation capability. Remanufacturing is advisable only if the OEM has strong capability. In a market with high consumer preference, the best strategy for the OEM is to actively invest in remanufacturing, regardless of whether its green innovation capability is weak or strong. This strategy aims not only to address the competitive threat from the IR but also, more importantly, to build new competitive advantages.</p>