Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

(Rick Simeone) #1

92 4 Case Description and Within-Case Analysis


was able to add profitable loops to the production process. As a result, ‘waste mate-


rial’ from the original production process was used up to generate valuable output.


Furthermore, the competitive advantage which was the second driver for the

organization to engage with circular economy is seen as an economic benefit. By


going one step further towards achieving sustainability the organization might be


able to attain stability in a volatile market which would give it an advantage over


its competitors.


Case Theta identified only positive impacts as it was able to realize its expec-

tations of engaging in circular economy. Although the organization is still at the


beginning of its move to circular economy, it has already reaped successes and is


therefore willing to increase its commitment.


4.11 Case Iota


4.11 Case Iota


4.11.1 The Company’s Circular Economy Approach


Case Iota has the least experience in the area of circular economy compared with the


other cases in this study. The circular economy approach adopted by the organization


is product life extension. To achieve this, several measures are being implemented.


The organization selects durable and timeless fabrics. Beyond the point of sale,


the organization provides maintenance instructions for its garments to ensure


the typical functionalities which outdoor gear usually offers (e.g. water-repellent).


Besides this, the organization offers a worldwide repair service for its products.


Products which cannot be repaired according to company-own excellence standards


are given as a donation to local partners which run outdoor camps for children.


Products that are donated must be of good quality even though they are no longer


perceived as high quality items. By doing this, the organization ensures a second


life for the product and tries to identify people who can make the most use out of it.


Furthermore, the organization has started to engage in the circular economy

approach remanufacturing. This means the organization attempts to manufac-


ture smaller items out of broken products. At present, the organization is testing


the production of chalk sacks or goggle cases made out of jackets. However, this


circular economy approach has not yet been implemented and is currently in its


test phase. The organization has several ideas for this approach and is testing the


possibilities and what kind of products can be realized.

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