Circular economy has gained significant attention in the past decade as a potential solution to address sustainability challenges. Implementing circular business model in the core business operation of a company is referred as circular business model innovation (CBMI). It contains a set of dynamic change processes including visioning, sensing, seizing, and transforming. Among all these phases, transforming phase has been in lack of research. This study examines transforming phase of CBMI in the multinational company IKEA. It adopts the business ecosystem perspective to investigate the specific actions and actors involved in the transform- ing phase of CBMI. The paper employs qualitative research with an in-depth case study method with semi-structured interviews. The aim of this research paper is to contribute to theoretical advancements by enhancing our understanding of the transformative phase of CBMI. The findings offer insights and implications about the opportunities and challenges faced by multinational companies during the CBMI process.