THE INNOVATIVE STRATEGY OF THE BUSINESS DEVELOPMENT BASED ON THE WASTE TIRE RECYCLING IN THE REPUBLIC OF LITHUANIA

Abstract

This article explores the development of a new business strategy in the Republic of Lithuania that focuses on the processing of waste tires into fuel. An innovative approach has been adopted, which incorporates three interdependent components: managerial, legal, and financial/economic factors. This approach ensures the integration of different levels and functions of management for the inclusive development of this business in the Republic of Lithuania. A set of indicators has been proposed, which were used to conduct a comparative analysis of alternative types of energy used for heating, such as diesel fuel, pyrolysis, wood pellets, electricity, and natural gas. A mathematical model has been constructed to formalize the financial and economic results of the tire recycling business, and it can be used to determine the results with any number of recycled tires. The investment analysis of the tire recycling business in the Republic of Lithuania confirms the economic feasibility of the proposed strategy. The risk assessment of the proposed strategy was also conducted, taking into account the technical and possible initial volumes of processing. Based on these economic and mathematical tools, managerial decisions can be made regarding the strategic alternatives for implementation. Additionally, the implementation of this strategy can lead to multiple positive environmental and social outcomes such as reduction of waste tires in landfills and decrease in dependence on fossil fuels. The results of this research provide a valuable basis for decision-makers in the government and private sector to consider the implementation of this innovative strategy and contribute to the sustainable development of the country.