Companies and whole branches of industry have a social and ecological responsibility. Excessive use of resources and exploitation of workers throw a negative light on certain branches of industry. One example for such an industry is the mobile phone sector.
In order to solve this problem, Frederik Meissner presents a case study of two sustainable business models. How do companies propose, create, deliver, and capture value? Do the discussed business models correspond to the principles of the circular economy? The circular economy is seen as a condition and a beneficial relation for sustainability.
Meissner’s first case is the smartphone retailer Fairphone, who provides a long-living, modular, and transparent mobile phone. The second case is Mazuma Mobile, a refurbishment service that provides second-hand mobile phones and the possibility to sell an old or broken electronic device. This book shows how a company can produce and deliver products using sustainable methods.
In this book:
- Business Model Canvas;
- Technical Cycle;
- Nine Building Blocks;
- Value Creation;
- Value Capturing
Table of Contents
1 Introduction
2 Theoretical Foundation
2.1 The Circular Economy
2.2 Osterwalder’s Business Model Canvas
3 Cases
3.1 A Modular Mobile Phone
3.2 A Refurbishment Service for Mobile Phones
4 Analysis
4.1 Methodology
4.2 The Business Model of Fairphone
4.3 The Business Model of Mazuma Mobile
5 Discussion
5.1 Fairphone and Mazuma Mobile in the Context of the Circular Economy
5.2 Implications for Theory and Practice
5.3 Limitations
6 Conclusion
Objectives and Core Topics
This thesis examines the role of business models within the mobile phone industry regarding sustainability and the Circular Economy. By applying Osterwalder’s Business Model Canvas to two distinct case studies—Fairphone and Mazuma Mobile—the research investigates how these companies attempt to produce, deliver, and extend the lifecycle of mobile devices using sustainable practices, and evaluates their alignment with circular principles.
- Analysis of sustainable business models in the smartphone industry.
- Application of the Business Model Canvas (BMC) to assess circularity.
- Evaluation of modular design and long-life product strategies (Fairphone).
- Investigation of recommerce and refurbishment services (Mazuma Mobile).
- Interpretation of results through the principles of the Circular Economy.
Excerpt from the Book
3.1 A Modular Mobile Phone
The first case in the analysis part is the “Fairphone 2”. Fairphone started as a campaign for the non-profit organization Waag Society, which is a research institute in Amsterdam in 2013. The campaign wanted to reveal the bad working conditions in the production of smartphones in Asia and resource mining in Africa, which is an untransparent and dangerous business for the involved workers (Schmitt, 2013). After two and a half years as a campaign, they transformed into a start-up. They thought that if they were part of the economic system, they could implement better conditions in a more effective way. Bas van Abel, the founder of the company aims at finding a way to produce a “fair” and transparent mobile phone, especially focusing on the supply chain management (van Abel, 2018). The company names four principles on its website that should lead to this development: applying a long-lasting design, use of fair materials and resources, providing good working conditions in supplying companies in China and mining factories in Africa and South America, and reusing and recycling of materials (Fairphone, 2018).
Summary of Chapters
1 Introduction: This chapter highlights the environmental and social issues in the mobile phone industry, introducing the linear model of production and the potential of sustainable business models.
2 Theoretical Foundation: This chapter establishes the framework by defining the Circular Economy and describing Osterwalder’s Business Model Canvas as a tool for analysis.
3 Cases: This chapter presents the two selected case studies, Fairphone and Mazuma Mobile, detailing their origins and core business approaches.
4 Analysis: This chapter applies the Business Model Canvas to both companies to evaluate their business logic, key activities, and efforts toward circular development.
5 Discussion: This chapter interprets how Fairphone and Mazuma Mobile align with Circular Economy principles and discusses the theoretical and practical implications.
6 Conclusion: This chapter synthesizes the research findings, reflecting on the industry's need for transition and the contribution of the analyzed business models to a circular future.
Keywords
Circular Economy, Business Model Canvas, Fairphone, Mazuma Mobile, Mobile Phone Industry, Sustainability, Modularity, Refurbishment, Recommerce, Resource Mining, Supply Chain Management, Technical Cycle, Waste Reduction, Conflict Minerals.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates how business models in the mobile phone industry can incorporate sustainable and circular practices to mitigate negative social and environmental impacts.
What are the primary thematic fields covered?
The work focuses on the intersection of the Circular Economy, Business Model innovation, and the electronics industry, specifically analyzing resource management and product lifecycles.
What is the main research objective?
The objective is to analyze and compare the business models of Fairphone and Mazuma Mobile to determine how they implement circular principles and address sustainability challenges.
Which scientific methodology is utilized?
The research employs a qualitative case study methodology, utilizing Osterwalder’s Business Model Canvas as an analytical framework to map and compare the two companies' business logics.
What is addressed in the main body?
The main body covers the theoretical background of the Circular Economy, the detailed case studies of Fairphone and Mazuma Mobile, and a critical discussion of their operational practices against circular design principles.
Which keywords best characterize the work?
Key terms include Circular Economy, Business Model Canvas, sustainable smartphone design, modularity, and resource efficiency.
How does Fairphone specifically contribute to circularity?
Fairphone utilizes a modular design that facilitates repairability and upgrades, aiming to extend the device's lifespan and decrease electronic waste.
What distinguishes Mazuma Mobile's "gap-exploiting" model?
Mazuma Mobile focuses on the collection, refurbishment, and resale of existing devices, effectively extending the lifecycle of used phones that would otherwise be discarded.
- Quote paper
- Frederik Meissner (Author), 2020, Sustainable business models in the context of the circular economy. How can a company produce and deliver products using sustainable methods?, Munich, GRIN Verlag, https://www.grin.com/document/507908
