Use-oriented business models : a multiple case study of rental providers within the Scandinavian outdoor apparel industry

University essay from SLU/Dept. of Economics

Abstract: Our current production patterns induce high consumption rates and equally high waste generation, which will eventually lead to resource depletion and substantial environmental damages. The concept of a use-oriented product-service system seems promising to encourage resource efficiency. However, it changes the core business and there are few guidelines for practitioners to adopt the concept. Knowledge is scattered in many different places and existing literature lacks a holistic explanation of the use-oriented business logic. By combining two bodies of knowledge, product-service systems and business models, this study aims to identify enabling factors with a use-oriented business model and describe its characteristics, challenges and suggest solutions to the problems. A multiple case study was conducted on seven companies that provide rental or leasing services within the Scandinavian outdoors apparel industry. The key findings indicate that the companies struggle with increased transportation, linear technological systems, large financial capital and cultural barriers. These challenges are met to a large extent through partnerships. In conclusion, the Business Model Canvas framework does not cover all characteristics of the use-oriented business model. This study contributes by illustrating a use-oriented business model and suggests adding three more elements: reduced material flows, reverse logistics and cultural adoption factors.

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