70 4 Case Description and Within-Case Analysis
However, producing only a limited amount of certified products due to capacity
constraints means that the product is more expensive than others in the organiza-
tions portfolio. The interviewee describes it as follows: “But this is not working for
this component because the volume is too low. Currently, we are hesitating to decide
whether or not to use this component for all our products because it would be a big
investment (...) if the volumes would increase we would make the investment” (see
Appendix: German Quote 16). Only if the prices of these products are the same as
the prices of conventional products they are attractive to the mass market. However,
in the current situation the sales figures are too low for the organization to make
a decision as to whether or not it should invest in new machines. The organization
will closely monitor sales figures in the upcoming years before making this decision.
4.5.4 Economic Impacts
Despite the challenges described above, the organization realized several positive
effects through the implementation of circular economy.
The first impact is a competitive advantage. The organization is first moverwithin the parquet industry when it comes to circular economy. Its products not
only attract customers because of their environmental-friendliness but also because
they are reusable.
Another positive impact adding to the competitive advantage is that the cus-tomer has the option to lease the parquet for a certain amount of time and then to
return it afterwards. With trends and demands changing at a faster rate, people
might not want to keep the same floor for 20 or more years and therefore value the
option of leasing instead of owning the parquet. The interviewee explained it as
follows: “We would like to do that [offer the option to lease the parquet] and if it [the
leasing] would fit adequately we would do it because it is a benefit for customers ...”
(see Appendix: German Quote 17). However, leasing as a business model has not
yet been established by the organization.
A second impact mentioned in the interview is the additional revenue. However,in case Gamma it is important to note that this impact is only theoretical since the
organization doesn’t yet live the concept. Currently, the idea is that the removed
parquet can be reused with no or only minor additional effort to refurbish it. Hence,
the organization has the possibility to sell the parquet after refurbishing without
purchasing new resources. The interviewee stated: “If we would have such products
in the portfolio we could easily remove them from the floor and sell them elsewhere
not at the original price but we would expect around 70 percent of the original price.
If that worked, the expenses for the wood would paid twice which is good for us” (see