Challenges of transforming a Business Model to a Sustainable Business Model - A case study based on IKEA and Tetra Pak

University essay from Lunds universitet/Företagsekonomiska institutionen

Abstract: Climate change, poverty, inequality and the increase of strict regulations - these are just a few of the factors contributing to the rise of sustainability in today’s corporate environment. As society and the worldwide population are affected by these omnipresent changes, it becomes inevitable for companies to transform their business models in order to respond to demands concerning sustainability. However, this process implies challenges that have so far not been further examined by literature - neither have the actions that companies need to implement to overcome them. Thus, this research aims at providing deeper insights into the emerging field of Sustainable Business Models. In particular, the following thesis envisions to contribute in terms of gaining understandings about the challenges of this process and to provide insights about how companies can overcome them. In order to reach this aim, a qualitative approach was selected and a multiple case study based on Tetra Pak and IKEA was conducted. To provide a theoretical background about the most relevant topics, a traditional literature review was conducted. Subsequently, these were confronted with the results collected from interviews and secondary data. Our findings suggest that challenges may arise in every element of the SBM while others may affect the whole system. In addition, actions to overcome these challenges require profound consideration regarding different factors such as the type of business and the ownership structure of the company.

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