Circular Economy Business Model Framework Considering Product Sustainability

Abstract

With the development of technology and industry, which started in the latter half of the twentieth century, environmental degradation intensified because of the depletion of natural resources, global warming, the disintegration of the ozone layer, acid rain, droughts, and other issues. The Sustainable Development Goals (SDGs) have inspired the creation of a brand-new business, economic, environmental, and social structure model called the Circular Economy (CE) concept, which is an alternative to the current linear economy and contends that all things in nature are in constant transformation with one another. At this point, it is now important to extend the product's useable and functional lifespans as well as the point at which it stops working. This study primarily seeks to give a foundation for developing a circular economy business model considering the product life cycle before outlining how it is integrated. The relationship between sustainability and the circular economy is first and foremost. After that, the circular economy and extended lifespan of product strategies are defined using literature research. All defined actions and decision points are used to design the phases of a model framework. In conclusion, it thinks the suggested framework will help the decision-makers who want to include circular economy principles into their business procedures, especially based on the manufacturing process. No matter how the business model relates to a specific industry, the framework's general behavior will surely help managers decide on the application stages.