Recent Business Theories

Business theory has been developed and revised over time to keep up with the ever-evolving world of business. Several new theories have received a great deal of attention in recent years and are being widely adopted by companies and organisations around the world.

1. Sharing Economy (2012)

The sharing economy was popularized by Rachel Botsman, professor at Harvard`s School of Business, and journalist Lou Rogers in the book "What`s Mine Is Yours. The Rise of Collaborative Consumption" refers to a model of commerce in which individuals can share or exchange goods and services directly with each other without the need for intermediaries. Examples of sharing economy companies are Airbnb, Uber and TaskRabbit.

advantage:

The sharing economy not only gives individuals greater flexibility and choice, but also provides access to a wider range of goods and services. It also helps reduce waste and increase efficiency as resources are shared and reused rather than thrown away. Additionally, idle assets can be monetized, thus providing an additional source of income for individuals.

Cons:

The sharing economy can also have a negative impact on employment as it crowds out traditional jobs and can lead to wage stagnation. Additionally, lack of regulation and standards in the sharing economy is a concern, which could lead to security and quality issues.

2. Circular Economy (2012)

The circular economy was popularized by the Ellen MacArthur Foundation, a UK-based non-profit organization. This is a model of economic growth aimed at minimising waste and maximising the use of resources. It creates a closed loop that minimizes waste and conserves resources, based on the principles of reducing, reusing, and recycling materials and products. Examples of circular economy companies include Patagonia and The Renewal Workshop.

advantage:

A circular economy not only significantly reduces waste and conserves resources, it also has the potential to drive economic growth and create new business opportunities. It also helps reduce the environmental impact of your business and promote sustainability.

Cons:

A circular economy requires significant investment in new technologies and processes, which can be a barrier to entry for small businesses. Additionally, coordinating the various actors involved in the circular economy and ensuring standards and regulations are in place can be challenging.

3. Platform Economy (2015)

Platform economics was popularized by academics such as platform economist Sangeet Paul Chowdhury and computer scientist James F. Moore. The use of digital platforms to connect buyers and sellers to facilitate the exchange of goods and services. Examples of platform economy companies are Amazon, eBay, and Etsy.

advantage:

The platform economy not only increases efficiency and reduces costs, but also gives individuals better access to goods and services. It can also create new business opportunities and foster entrepreneurship and innovation.

Cons:

The platform economy can also have a negative impact on employment as it crowds out traditional jobs and can lead to stagnant wages. There are also concerns that it will lead to market dominance and stifling competition.

4. Common Economy (2015)

The communal economy was popularized by authors such as Jeremy Rifkin in his book The Zero Marginal Cost Society. It is a model of economic growth aimed at fostering collaboration and collaboration between individuals, organisations and businesses. It is based on the principles of sharing and working together to create value and achieve common goals. Examples of cooperative economy companies include Wikipedia, Dropbox, and Slack.

advantage:

The collaboration economy fosters innovation and creativity, helping to increase efficiency and reduce costs.