2.5.1 Overview of business models
BUSINESS MODELS FOR A CIRCULAR ECONOMY (1/2)
David Peck interviews Professor Arnold Tukker of the Leiden University Institute of Environmental Sciences (CML). In the first video, Professor Tukker describes how companies can move from a “sell more, sell faster” model to a business model that emphasises selling services instead of products.
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We can distinguish three different categories of product-service business models:
- Product-oriented: the business model is geared towards sales of products. Some extra services are added, for instance a maintenance contract.
- Use-oriented: The product still plays a central role. It is owned by a provider and is made available to a client. This is also referred to as an “access” model.
- Result-oriented: The client and provider agree on a result. There is no pre-determined product involved. This is also referred to as a “performance” model.
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Based on a work at https://ocw.tudelft.nl/courses/circular-economy/.