A Business Model for a Constrained World

Our natural systems are increasingly threatened by climate change, droughts, increasing population, and related crises. These coming crises will have massive economic impacts, and firms will soon need to learn how to operate in a setting where resources are constrained and old business models are no longer competitive.Image

Aleyn Smith-Gillespie (MCP/SM 2001), now an associate director at Carbon Trust, recently contributed to an Economist report on the future of business models in a constrained world. Aleyn notes that, for many products where the cost of ownership is high and the rate of utilization low, businesses have an opportunity to recognize resource constraints by shifting away from an ownership economy and towards a sharing or subscription-based one.

Many proactive businesses have already begun to move in this direction, by emphasizing shared ownership of under-utilized resources (like cars and industrial machinery) and advertising services over products.

As these new business models succeed and resource constraints continue to strangle the old economy, Aleyn expects this shift to become more pronounced. Read more about Aleyn’s take on his guest blog at the Economist, or download the full Economist report, Supply on Demand.

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Posted on February 11, 2014, in climate change, economy, international sustainability and tagged , , , , . Bookmark the permalink. Leave a comment.

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