80 4 Case Description and Within-Case Analysis
The second positive impact is the competitive advantage the organization believesit has in that its products are circulatable, a unique characteristic. Although there
is still some customer education required, the organization sees itself as market
leader. For customers whom this characteristic as well as the fact that non-toxic
and healthy materials are used to make the product are important the product will
be an attractive purchase.
Another positive impact is the long term customer relations that are built as aresult of implementing the circular economy concept. The organization is planning
to offer major discounts for customers who bring back their chairs at the end of
their lifecycle and buy a new one. The interviewee explains the idea as follows: “The
customer is benefited in that when he/she returns a chair and buys a new one, the
materials are reused and he/she only has to pay 10 percent of the cost of materials” (see
Appendix: German Quote 34). Hence the customer saves money when purchasing
a new chair and the organization is able to establish a customer relationship based
on the long-term. This benefit is dependent on the future development of resource
prices. If the prices of virgin resources rise it will be beneficial for organizations
to use recycled materials.
Case Epsilon has yet to fully implement its circular economy approaches becauseit is still developing its ideas regarding the latter stage of the product life cycle.
When it comes to the customer returns process there are questions that remain
unanswered such as what is the benefit for the customer when he/she returns the
product and how can the organization ensure the chair is returned at the end of its
lifecycle. However, the organization is optimistic and therefore it is going to certify
every new product line in the future.
4.8 Case Zeta
4.8 Case Zeta
4.8.1 The Company’s Circular Economy Approach
Case Zeta started its ‘closing the loop strategy’ in 2013. Its objective was the im-
plementation of closed material loops through sustainable product innovations.
The entire approach of the company can be classified into four different circular
economy approaches (as depicted in Table 12). The circular economy approaches
chosen are circular supplies on product and process level, resource recovery and
remanufacturing.