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The relevance of Product Service System business models in the context of Planned Obsolescence

Charlier, Axelle
(2018)

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CharlierAxelle_33051300_2018.pdf
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Details

Supervisors
Swaen, Valérie
Faculty
Louvain School of Management
Degree label
Master [120] en Ingénieur de gestion
Abstract
Goods are being used for shorter periods of time, which leads to environmental issues such as resources scarcity and climate change. On the one hand, shortening products' life, as a strategy to foster consumerism, is the answer of business to a highly competitive market. On the other hand, this model is not sustainable, and the economy must evolve towards a more sustainable pattern. This thesis has for objective to show the future trends regarding planned obsolescence by understanding the impact of Belgian entrepreneurs on the product's lifespan by integrating Product Service Systems features in their business models. The literature review outlines the background of planned obsolescence, the strategy of intentionally shortening a product's life, and of Product Service Systems, business models combining product and services to offer additional value to customers. The PSS business models have a high potential to overcome the challenges brought by planned obsolescence, but some restrictions and careful design are needed to qualify them as sustainable business models. The research is performed with a multiple case study, in which six start-ups are analyzed through semi-structured interviews with the founders. The data collected is assessed according to the following business model features: infrastructure management, value proposition and customer interface. This thesis has the objective to find out how planned obsolescence and the rise of PSS business models influence the new generations of entrepreneurs in their decision-making process. Indeed the combination, used among the interviewees, promotes efficient use of resources and extended product's lifespan. By encouraging digital solutions, entrepreneurs also ease the ownership transition from end-users to companies and facilitate the adoption of PSS business models. Entrepreneurs naturally integrate sustainable PSS activities and positively impact the product's lifespan. However the cooperation between prominent companies, start-ups and government is crucial to foster the adoption of a more service-centered consumption pattern which could be a solution to some significant environmental problems.

Citations

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Charlier, A. (2018). The relevance of Product Service System business models in the context of Planned Obsolescence. https://dial-mem.test.bib.ucl.ac.be/handle/2078.2/6900