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The linear economy-The 'take, make and waste' approach of production 

The linear economy-The 'take, make and waste' approach of production 

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In the face of a rising global population and the associated growing resource consumption and negative environmental impacts, the fundamental need for an alternative to the traditional linear model of growth has led to the emerging debate about circular economy. While the topic of circular economy has been receiving increasing attention in the lite...

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Context 1
... order to grow, such economic system has provided incentives to increase sales and to simulate economies of scale, which has led to an ever-increasing consumption of goods and services. As illustrated by the conceptual diagram in Figure 2, such economic model is characterized by the 'take, make, waste' pattern and is built on two strong assumptions: boundlessness and easy availability of resources (energy and raw materials) as well as a limitless regenerative capacity of the Earth. Accordingly, as the economy grows, we need more raw materials for the production of goods and we produce more waste. ...
Context 2
... of the rich diversity in the retail sector, there is no one-size-fits-all solution or approach for the implementation of circular business model. Therefore, as illustrated by Figure 20, this framework takes the core principles of circularity and applies them to four key action areas for retailers wanting to move towards the circular economy: 1) provide functionality rather than ownership 2) promote collaboration for cost effective reverse loop 3) adopt a stewardship role 4) use and serve the local economy. This four actions framework provides a structure to understand the fundamental aspects of implementing circular economy in retailing. ...
Context 3
... such reconditioning system has some key implications for the retail-manufacturer ecosystem and thus represents a strategic decision, as illustrated by Figure 22. On the one hand, retailers need to be trained and equipped for reconditioning processes as well as educated in marketing the leasing arrangements to consumers. ...
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... the retailer's perspective, stewardship activities can be divided into three broad categories which are closely linked, as illustrated in Figure 23 (Danish Environmental Protection Agency (2011, p. 2)): The role of retailers in the circular economy certified wood sourcing and proactively look for replacing more trees than are consumed to offset damage done collectively by industry over the past decades (Kingfisher (2017, p. 35)). ...
Context 5
... role of retailers in the circular economy Finally, the importance of local distributed networks is further reinforced by Weetman (2016) in her book on circular supply chain. As illustrated by Figure 24, the asset-light and lower- cost centralized networks (i.e. linear economy) are more exposed to disruption of supply flows, whereas the extra nodes and links in decentralized systems (i.e. ...
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... on the definition explained in section 4.1, the value proposition of KouniToys is summarized in Figure 25 and the four key elements are further detailed afterwards. Accordingly, many times, children will play with a toy for a while (from a few hours to a few days) and then they will lose interest. ...
Context 7
... value capture mechanism of KouniToys is a subscription model with three different subscription packages (including delivery charges), as showed in Figure 26. The subscription rate was set based on the willingness of the customer to pay for the service (i.e. based on the results of the online survey) and the number of toys (i.e. ...
Context 8
... (subscription rate + sale of toys) for a total cost of 11.3€ (the packaging (2.3€), the shipping (3.6€) and the depreciation of the toys (5.4€)), which leads to contribution margin of 12€/month. As showed by Figure 27, the first month, there is a negative contribution margin (i.e. loss) due to customer acquisition costs and after only 3 months, the company already reaches the break even at the customer level. ...
Context 9
... risks of critical resources: Price volatilities of various commodities have steeply increased over the last decade as illustrated by Figure 32. Such high price volatility is mainly explained due to short term scarcity, as supply chains are not able to keep up with increasing demand of a growing population and average consumption (Ellen MacArthur Foundation (2012, pp. ...

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