The Remanufactured Fashion Design Approach and Business Model

“A company’s business model is the way it strategically positions itself in a particular market” (APSRG 2014b , p. 77). It is important to understand the remanufacturing process within a business model context as it examines how a company positions itself

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The Remanufactured Fashion Design Approach and Business Model

3.1 The Business Model Concept The term “business model” is generally accepted, but there is no singular definition. Two notable descriptions, however, form the basis of much research within the business model area: • A business model “articulates the logic and provides data and other evidence that demonstrates how a business creates and delivers value to customers. It also outlines the architecture of revenues, costs and profits associated with the business enterprise delivering the value” (Teece 2010, p. 173) and • “a business model describes the rationale of how an organisation creates, delivers, and captures economic, social, and other forms of values” (Osterwalder and Pigneur 2010).

3.2 Significance of the Business Model Concept According to Wirtz et al. (2015), the scientific use of the term “business model” can be traced to Bellman et al. in (1957). Locating the place of the business model within academic literature has been difficult as noted by Teece (2010) and the concept of “business model” has been criticized because of the imprecision of the term and the resultant lack of developing well-researched company strategy and competitive advantage (Porter 2001). Indeed, a business model is “conceptual, rather than a financial, model of a business” and “outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise goes to market” (Teece 2010, pp. 173–174). However, the static concept of the business model has developed from a heuristic, descriptive and operational perspective (often in the realms of information technology and business © Springer Science+Business Media Singapore 2016 P. Sinha et al., Remanufactured Fashion, Environmental Footprints and Eco-design of Products and Processes, DOI 10.1007/978-981-10-0297-7_3

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3  The Remanufactured Fashion Design Approach and Business Model

process modelling) to become a management tool (Wirtz et al. 2015) with a more strategic approach that seeks to examine elements of competitiveness and innovation. This is due to the structured and holistic approach to understanding a firm’s organizational structure, capabilities, target markets and value propositions. As noted by Storemark and Hoffmann (2012), business model literature may be regarded as an “interesting alternative to the positioning (Porter 1985), resource based (Barney 1991) and relational (Dyer and Singh 1998) schools of strategy (Warnier et al. 2004)” (Storemark and Hoffman 2012, p. 36).

3.3 Business Models and Sustainability “Green business models” have been defined as “business models which support the development of products and services (systems) with environmental benefits, reduce resource use/waste and which are economically viable. These business models have a lower environmental impact than traditional business models” and highlight their aim to create economic and environmental win–win benefits for both the supplier and the customer (FORA 2010). T

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