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

(Rick Simeone) #1

60 4 Case Description and Within-Case Analysis


to remain competitive and also there are not enough people who are willing to pay


mo re .” Through mixed calculation other products produced by the organization


‘subsidize’ the circular economy products. The organization is able to do this because


its products are high-end apparel and therefore are located in the high price segment.


Due to the higher prices of recycled resources, the company currently has no

plans to increase the amount of recycled polyester in its product portfolio. Nev-


ertheless, the company has a strong commitment to caring and protecting for the


environment. The company foresees the price of petroleum and other virgin re-


sources increasing in the future. It has identified a potential competitive advantage


in acquiring knowledge of how to handle these recycled resources before prices for


virgin ones increase.


Another positive effect is customer appreciation. The number of organization

Alpha’s customers who value its commitment to circular economy and return their


products to be recycled is low. However, the organization does attract a certain


group of buyers who have a special interest in ‘green’ products. These customers


which might otherwise have not been interested in the brand have a positive effect


on the economic performance of the organization.


The final impact is the additional revenue gained through the reselling of used

down jackets that have been to returned to the store after customers have had


their use out of them. These jackets are cleaned, repaired and resold generating an


additional income stream for organization Alpha.


To summarize, the approach of case Alpha is quite comprehensive and includes

multiple circular economy approaches. The change towards a circular economy as


well as the integration of a closed-loop production into the manufacturing process


for all consumer goods is mandatory in the eyes of the interviewee.


4.4 Case Beta


4.4 Case Beta


4.4.1 The Company’s Circular Economy Approach


Case Beta has adopted two circular economy approaches (see Table 8). The orga-


nization is implementing the circular economy approach circular supplies at both


product and process level.

Free download pdf