Topic 1 Other business models and materials

A linear model deals with raw materials in an inefficient way, because the emphasis is not on their conservation.

In a circular economy, this is the focus. This means that other business models are also used in a circular economy, with more emphasis on services rather than products.

An example of a model that facilitates the transition to the circular economy is a product-service combination (Product-As-A-Service System), which is seen as a model to integrate products and services (Michelini, Moraes & Cunha et al., 2017).

A widespread example of a product-service combination is the Xerox printer system, in which companies receive a printer free of charge and pay per copy. This system fits well within the circular economy, because as a manufacturer, Xerox has an interest in ensuring that the printer will last a long time, by being able to repair and update it. In the linear sales system, the manufacturer often benefits if the product breaks down quickly so that it can sell a new product.