Circular Business Models and Take-back in the Lifestyle Industry

Abstract

Since the industrial revolution, the lifestyle industry has been dominated by the linear economy model. Organizations within the industry have previously experienced great revenue streams with a linear production, but this production pattern have consequently resulted in climate change and resource depletion. However, organizations and consumers are currently becoming more interested in preserving the environment. Therefore organizations increasingly aim at replacing the linear business model with circular business models, hereunder take-back systems. In this transition, organizations are doubting whether they will be able to experience economic growth and competitive advantage with a take-back system. The conducted research will examine how organizations in the lifestyle industry can create economic growth and competitive advantage with a take-back system.
In this thesis, we have used qualitative interviews to investigate the most prominent and repeating strengths, weaknesses, opportunities and threats regarding take-back systems in the lifestyle industry. These findings have been used to conduct a TOWS matrix, which presents four strategies for organizations to use, in order to create economic growth and competitive advantage with a take-back system.
The strategies show that organizations can create economic growth and competitive advantage by creating transparency through blockchain, targeting the right customer segment, creating partnerships and collaboration and being inspired by take-back first movers. However, we propose that organizations combine a short-term and a long-term strategy in order to create economic growth and competitive advantage now, as well as in the future. Thus, organizations should target the right customer segment through experimentation and share knowledge regarding take-back systems in order to normalize take-back products and solutions in the lifestyle industry.