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A new business model for baby prams based on easing and product remanufacturing

Author:
  • Oksana Mont
  • Carl Dalhammar
  • Nicholas Jacobsson
Publishing year: 2006
Language: English
Pages: 1509-1518
Publication/Series: Journal of Cleaner Production
Volume: 14
Issue: 17
Document type: Journal article
Publisher: Elsevier

Abstract english

A shift in business thinking from selling products to providing service solutions to customer needs is becoming noticeable. It is driven by increasing competition and the need to identify new profit centres for producers of mature products. This paper identifies a new product group that could be interesting from the product-service system perspective - baby prams. The study presents a new business model based on selling the function that baby prams provide through leasing prams. It discusses potential barriers and necessary changes in product design and the supply chain to make it work. The product-service system in this case could include the organisation of a reverse logistics system with different levels of refurbishment and remanufacturing of prams, partially by retailers. The new model may provide customers with a high quality pram in a "like new" condition for the period they need it, and may help avoid transaction costs of having to sell the pram on the second-hand market. Economic estimations point to a significant potential for increased profits, while the environmental potential should be further investigated.

Keywords

  • Social Sciences Interdisciplinary
  • products
  • durable
  • prams
  • remanufacturing
  • product-service systems
  • leasing
  • eco-design

Other

Published
  • ISSN: 0959-6526
oksana.jpg
E-mail: oksana [dot] mont [at] iiiee [dot] lu [dot] se

Professor

The International Institute for Industrial Environmental Economics

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International Institute for Industrial Environmental Economics (IIIEE)

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