Creating Customer Value in a Circular Economy

University essay from Lunds universitet/Miljövetenskaplig utbildning

Abstract: Resource related challenges are becoming increasingly severe. The shift towards a circular economy is viewed as one prominent way to overcome the challenges. A shift towards a circular economy would partly require new business models, commonly referred to as circular business models. In order to enhance the development of circular business models, there is a need to understand how companies with circular business models can create customer value. Hence, a company need to create value for their customers in order to capture economic value within the organisation. Therefore this study is looking into how existing companies, and in particular those with service oriented circular business models, are creating customer value. The term service oriented circular business model is introduced in this study and can be seen as a sub-set of circular business models; with the common characteristic of providing access or usage of products rather than ownership. The study uses the value proposition canvas as a tool, showing how the three companies, Vigga, Enso and Repack, are creating customer value by enabling their customers to: save money, save time, use high quality products, use more convenient solutions, reduce their environmental impact and by creating an “early-adapter-feeling”.

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