The primary means for gaining and sustaining competitive advantages for companies are shifting downstream. Is that also the case in a circular economy?

In today’s business environment, the traditional means for gaining and sustaining competitive advantages are rapidly shifting downstream. The traditional focus on cost leadership (vertical integration among production, supply chain and distribution) is being replaced by an emphasis on speed to market, customer service and data analytics (Horváth & Partners, 2017). This shift has been prompted in part by the emergence of a circular economy – an alternative economic system focused on decoupling economic growth from resource consumption through redesigning products with longevity, reuse and recycling in mind. As such, it stands to reason that companies seeking competitive advantages in a circular economy must do things differently as compared to what was typically done before its emergence.