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ΕλληνικάMain changes in business models in the field of circular economy
Entrepreneurs develop new forms of production by applying new business models that:
- use all intermediate goods fully renewable recyclable or biodegradable resources
- extend the life cycle of the product
- offer a product as a service
- promote collaborative consumption through exchange platforms
- reclaim resources at the end of a product life cycle
Here you have a brief summary about these changes in the circular business models:
| Conventional business models | New business models | |
| Principles for value creation | Business continuity and profit optimization are the main drivers
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Circular business models open the way to incorporate multiple principles for value creation beyond finance, the environmental and social values of companies are taken into consideration: Creating impacts is a relevant issue in this type of model
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| Cooperation
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Traditional relationships between buyers and sellers in the linear supply chain: The benefits of a product or service are limited to buyers and sellers
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Companies within circular supply chains often cooperate with each other beyond the buyer-seller relationship instead operating in a network of companies and institutions often involving a strong element of collaboration and co-creation.
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| Transaction
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Transactions arise in B2B or B2C markets, with money being the medium of exchange.
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New market segments are emerging in which consumers interact with other C2C consumers and in which economic agents act as both manufacturers and C2B consumers. Money is the main but not necessarily the only medium of exchange, energy, time or waste can also be exchanged.
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| Property
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Ownership is essential for the consumption of products and services
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Access to a service is more important than ownership of a product that provides a service |
| Success Indicators
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Success is measured in a financial cost-benefit analysis for both buyers and sellers | Success is measured in a financial and non-financial cost-benefit analysis carried out by all the stakeholders involved as well as by society as a whole.
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