For consumer durables, environmental sustainability starts with discarding conventional wisdom.
Rethinking Durables
Sustainability for consumer durables demands deeper thinking than the simple “reduce, reuse, recycle” framework. And unlike consumables, where the responsibility for rethinking falls on consumers, for durables, the primary rethinking job belongs to business executives and environmental regulators.
A rethinking of the problem should start with an examination of the ecological impact and economics across the full product life cycle — from manufacture through use, reuse, recycling, and disposal. The economic incentives for the various industry players must also be considered, including original equipment manufacturers (OEMs), retailers, service providers, remanufacturers, recyclers, and waste management companies. Every industry has a unique set of players; for each of them, the costs and benefits vary considerably, and are sometimes at odds. This insight provides a starting point for thinking strategically about reshaping the industry value chain in ways that increase profits while reducing environmental impact. Such rethinking can be employed by business executives to seek out new profit pools — or, alternatively, by regulators to alter the profit pools and enhance overall societal benefits.
Published: November 23, 2010 / Winter 2010 / Issue 61
by Tim Laseter, Anton Ovchinnikov, and Gal Raz
this is an exerpt from full article : http://m.strategy-business.com/article/10406?gko=ec603
