Reference no: EM132266047
BUSINESS MODELS AND CIRCULAR BUSINESS MODELS
In CBMs value propositions are characterized by enhanced customer’ value as a result of more comprehensive ‘circular offerings’ (e.g. products as services; greater convenience; dematerialized products; superior product durability and ecological performances; product upgradability; take-back schemes) and circular relationship’ (access over ownership, e.g. leading, renting sharing).
The adaptation of existent resources or the development of new resources and capabilities appear to be crucial for value creation and delivery (how value for customers is created and delivered?) (Lacy and Rutqvist 2015). This can involve:
A. Sourcing and innovative design capabilities to ensure that primary materials used in the manufacturing process are fully recoverable, biodegradable and recyclable at the end of products useful life;
B. Constant customer’s engagement along the entire product life to provide them with services and to enable product recovery at end of life;
C. Reverse logistics capabilities to enable the flow of products from downstream (consumers) back upstream (manufacturer).
Match 1-5 with A-C and explain.
1. Caterpillar, the manufacturer of machinery for the construction industry, produces heavy machinery that is suitable for remanufacturing, repairing and upgrade. ___
2. Local Motors utilizes carbon fiber reinforced plastic pellets which can be recycled five times on average in the manufacture of its vehicles. ___
3. Marks & Spencer, a leading UK’s retailer, collaborates with Oxfam, a not-for-profit organization, to facilitate recycling of used Marks & Spencer’s clothes, shoes, and bags. These items can be brought into Oxfam stores where customers receive a voucher that can be spent in Marks & Spencer’s stores. ___
4. Michelin, through its tires as a service model, allows fleet customers to lease instead of purchase tires. Consequently, customers do not own the tires and the contract is based on a pay per mile fee. Michelin provides maintenance as well and collects back worn-out tires which can be reprocessed into feedstock for the manufacturing of new tires or something else. ___
5. British Sugar converts waste and emissions deriving from its core sugar production into inputs for new products lines (e.g. animal feed, betaine for the cosmetics industry, bioethanol, soil conditioner. ___