From Kabul to Reykjavík: Sustainable Value Creation in the Upcycled Fashion Supply Chain of ByNoor: Strategic Analysis of an Upcycled Luxury Brand

Abstract

This thesis examines how a small sustainable luxury brand develops and sustains competitive advantage through the upcycling of vintage fur across two different contexts. Using Robert K. Yin’s qualitative case study approach, the study draws on one formal interview, direct observation, and ongoing conversations to understand how the firm’s strategic direction emerges through every day routines and decisions. The analysis applies several theoretical tools, including the Resource Based View, VRIO, dynamic capabilities, niche theory, and sustainable luxury frameworks.The findings show that the company’s most valuable strengths lie in its tacit craftsmanship, its disciplined eight step restoration process, and its ability to manage material variation through experience and skill. These routines are difficult for competitors to imitate and therefore support competitive advantage. The company demonstrates adaptive behaviour that aligns with dynamic capability principles, particularly in responding to uncertain supply quality and logistical constraints. From an external perspective, the Icelandic market’s emphasis on sustainability and authenticity provides favourable conditions for a niche positioned upcycled brand.The thesis concludes that micro craft-based firms in sustainable luxury can build strategic advantage through depth of process, authenticity, and meaning based differentiation. Limitations of the study are acknowledged and suggestions for future research are briefly outlined.