Developing a Strategic Roadmap for a Circular Business Model Using a Total Cost of Ownership model : An ASSA ABLOY case study

Sammanfattning

The transition toward circular business models is increasingly important as manufacturing firms seek to reduce carbon emissions and resource consumption. However, refurbishment strategies often face challenges related to reverse logistics, organizational complexity, and uncertain economic viability. This thesis investigates the feasibility of implementing a refurbishment-based circular business model within ASSA ABLOY Entrance Systems through the development of a Total Cost of Ownership model and a strategic roadmap. Using a mixed-methods single-case study approach, the research combines semi-structured interviews, survey data, and quantitative techno-economic analysis. The study evaluates the refurbishment potential of high-volume spare parts used in automatic entrance systems, with the analytical framework integrating Transaction Cost Economics, Circular Business Model Innovation, and Techno-Economic Assessment. The findings show that refurbishment viability varies significantly depending on product architecture, reverse logistics efficiency, and organizational incentives. Modular electronic components demonstrated strong refurbishment potential and favorable TCO performance, while integrated electromechanical components faced major technical and economic barriers. The study also identified hidden costs related to logistics, testing, and information asymmetry that are often overlooked in conventional financial assessments. Based on these findings, the thesis proposes a phased strategic roadmap for circular transition, emphasizing localized pilots, improved component capture rates, and digital servitization. The research contributes practical insights into how refurbishment strategies can support both sustainability goals and long-term economic value creation in industrial supply chains.