Business models for product life extension

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi Määttä, Marika 2013-12-18T11:19:14Z 2013-12-18T11:19:14Z 2013
dc.description.abstract Products are being used for shorter and shorter times, which causes environmental degradation and an increasing scarcity of natural resources. On the other hand, businesses face pressure to succeed in the highly competed global market. This master's thesis aims to show, how businesses could manufacture or use longer lasting products and be profitable at the same time - the objective of this thesis is to find out, how business models could enable the extension of product lifespans. The literature review of this thesis presents the background of planned obsolescence, a phenomenon which has led people to ask, why products no longer last. Whether it is physical or technological obsolescence, consumers can or will not use products as long as they used to. Also previous research around the business model concept and sustainable business models is discussed. The reasoning behind what makes a business model a good unit for analyzing product life extension is explained in the methodology section. The empirical part of this thesis focuses especially on what the characteristics of such business models are that have made product life extension possible. This research is conducted as a multiple case study, in which altogether five different business models from different industries act as the case studies. The data is collected from multiple sources: two semi-structured interviews are conducted, and secondary data from e.g. company websites, newspapers and government institutions' websites is collected. The data is analyzed according to three business model features: value proposition, revenue model and customer interface. Afterwards the features of the case business models are compared to those of their competitors. The research indicates that there are numerous factors that influence the success of business models which extend product lifespans. On the basis of the case study it can be concluded that such factors as ageless and aesthetic product design, efficiency and experience in running a service supply chain, offering a service instead of a product (servitization), powerful brand stories, reuse and recycling of products and materials, and warranty as a quality promise can help companies in producing and using longer lasting products, as well as in profiting from them. Nevertheless, the suitability of these factors may be industry and even business specific. Moving to a more service-centered way of consumption could offer a solution to the environmental problems and scarcity of resources we are facing on the planet. Servitization seems to work especially for B2B types of companies, but product-service systems for consumers seem to be more difficult to achieve. The cooperation of businesses, consumers and governments is needed in order to be able to use and produce longer lasting products. en
dc.format.extent 84
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Business models for product life extension en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Department of Management and International Business en
dc.contributor.department Johtamisen ja kansainvälisen liiketoiminnan laitos fi
dc.subject.keyword business models
dc.subject.keyword product life extension
dc.subject.keyword planned obsolescence
dc.identifier.urn URN:NBN:fi:aalto-201312198138
dc.type.dcmitype text en
dc.programme.major Organization and Management en
dc.programme.major Organisaatiot ja johtaminen fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon organisaatio
dc.subject.helecon organization
dc.subject.helecon johtaminen
dc.subject.helecon management
dc.subject.helecon liiketalous
dc.subject.helecon business economics
dc.subject.helecon mallit
dc.subject.helecon models
dc.subject.helecon tuotteet
dc.subject.helecon products
dc.subject.helecon ikä
dc.subject.helecon age
dc.subject.helecon elinkaari
dc.subject.helecon life cycle
dc.subject.helecon suunnittelu
dc.subject.helecon planning
dc.subject.helecon palvelut
dc.subject.helecon service
dc.ethesisid 13397 2013-08-30
dc.location P1 I

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