ABSTRACT
Traditional business models, where the company purely focuses on increasing sales and loses track of its products after the point of sale, are no longer fit for the 21st century. To be successful however, Circular Economy (CE) business models need to be carefully tailored to the specific set of capabilities and resources of each company; operationalized through modern technological advancements; and directed to the opportunities in the market in which the firm operates. By placing net-zero considerations right at the beginning of the design phase, companies can take decisions that reduce costs and concurrently enhance product value. The servitization business model implies a shift away from the typical transaction-based system of product sales and ownership, towards a more fluid approach whereby customers are provided with alternative service-based solutions. Out of all CE business models, those based on product life extension are arguably the most disruptive for companies.
