Business strategy taxonomy and solution patterns for the circular economy

The increasing importance of sustainable development confronts companies with various disruptive challenges. It requires them to design their products with environmental considerations, such as reducing emissions, in mind. In this context, the circular economy has emerged as a promising approach. However, a comprehensive transformation of the existing business is required to comply with the principles of the circular economy. Undertaking the circular transformation in a structured and systematic way requires defining the envisioned strategic positioning of the company first. However, companies lack concrete design knowledge on the aspects necessary for strategic positioning in the circular economy. Therefore, this paper aims to develop a holistic taxonomy for describing circular business strategies and suitable solution patterns. A design science approach was chosen as the overarching research approach that orchestrates the research methods for taxonomy and pattern development. The resulting taxonomy for business strategies comprises ten dimensions, such as product design or take-back system, with 31 characteristics. Based on the taxonomy, appropriate solution patterns representing a thrust for strategic positioning in the circular economy were derived. The results enable companies to integrate circular transformation into their strategic planning early.