64 4 Case Description and Within-Case Analysis
A positive impact the organization identified is the constant revenue stream.Since starting the circular product line eight years ago, sales quantities have been
growing, as explained by the CEO: “(...) we started with smaller quantities which
we have never had to decrease. Sales quantities haven’t made a huge increase but
they are growing at a steady and slow rate” (see Appendix: German Quote 6). The
production units remain low but due to constant growth the organization predicts
positive developments in the next years. Having this constantly growing product line
ensures the diversification of its product portfolio and reduces the risk of failure.
A third effect the organization sees in engaging in circular economy is thecompetitive advantage gained particularly with regards to competitors from low-
wage countries. The biodegradability of the products the organization in case Beta
produces is where its competitive advantage lies. The CEO explained in the following
quote why having this competitive advantage is important to him as CEO of the
organization: “It is important for me as a German manufacturer to be the first to offer
Cradle-to-Cradle products before any competitor from China offers such products”
(see Appendix: German Quote 7). Since every step of the organizations production
process takes place in Germany, the prices of its products tend to be higher than
those from its competitors in low-wage countries. A unique characteristic such as
biodegradability is a valuable attribute which differentiates from the products of
cheaper competitors.
The final benefit the organization sees is the acquisition of new customerswho are attracted to the products circular and biodegradable features. As the first
textile company in Germany to offer this kind of apparel, customers who care
about the environment will value the organization’s commitment to protecting the
environment. “You know, there are customers who appreciate this commitment” (see
Appendix: German Quote 8).
The organization in this case didn’t exhibit any intrinsic motivation to engagein the concept of circularity. Nevertheless, it was willing to take the risk to engage
in this new concept by investing in protoyping for two years. The organization was
one of the first in the textile industry and also in the country to engage in circular
economy and because of this it received a lot of attention. This was a motivating
factor in the organizations decision to engage with the idea. The selling of biode-
gradable products at a time when no other organization was offering such products
created a steady revenue stream for the organization.