Closing the loop –Designing a subscription-based circular economy business model: A case study of a kitchen household appliances company
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Examensarbete för masterexamen
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Kitchen household appliances bear a great impact on the environment through both the
production and use of the products. While great attention has been paid to theorising
general models for adopting the circular economy, there remains research avenues in
contextualising these within specific industries. To bridge the kitchen household
appliance industry into the circular economy paradigm, the thesis aims to design a
subscription-based circular economy business model. Furthermore, it explores how to
construct the supply chains to enable the business model. This is performed through a
case study of a company in the Benelux region.
Laying the groundwork for the investigation, two studies were conducted. First, a
literature study into circular economy business models (CEBM) with a particular focus
on closing the supply chain. Second, an interview study was performed with
management employees from the case company along with external industry and
CEBM experts. Collectively, these represented the qualitative data that was
subsequently used to answer the research questions.
The empirical findings and ensuant results reveal a possible construction of a
subscription-based CEBM, highlighting the interdependencies of the forward and
reverse supply chain. The results furthermore display a need for new D2C channels and
the targeting of three segments that showcase potential. Throughout the model, there is
a recurring theme on the need for partnerships as an enabler of the model which stands
in agreement with most circular economy research. The subsequent discussion delves
deeper into the various views raised on the proposed model during both the interviews
as well as in established research.
In conclusion, the thesis contributes to closing the gap between theoretical CEBMs and
industry related factors by providing a contextualised model for the kitchen household
appliance industry.
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Ämne/nyckelord
kitchen household appliances, circular economy, circular economy business models, reverse supply chain, closed-loop supply chains