The Loop Needs Economics, Not Applause
Explain why a circular loop must be backed by revenue, margin, and ownership incentives.
Circularity scales when the business model wants the loop to win. A take-back scheme can collect products, but only a business model decides whether keeping those products in play creates durable value. Separate the loop from the model A loop describes physical flow: return, repair, refill, resell, remanufacture, recycle, or convert a by-product. A model describes value flow: who pays, what they receive, who owns the asset, what capability is funded, and how the company captures upside. Confusing the two is why many pilots look promising in a press release and weak in the P&L. Follow value retention, not just…
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