BRIDGESTONE EUROPE: A Circular Business Model Innovation Journey

Abstract

This report provides an overview of the circular business model innovation journey guided by the R2π project team for Bridgestone EMEA (Europe, Middle East and Africa). The team customised an innovation process to suit the specific needs of the company in order to help them explore opportunities to become more sustainable and circular. Due to confidentiality agreements, this report does not provide details of Bridgestone strategy and internal business data, rather the purpose of the report is to describe the innovation journey and tools utilised. A key challenge of the company relates to end-of-life tyres (ELT), a problem that persists in all tyre companies and in society due to the negative environmental and social impacts that this waste could result in, if not properly collected and treated. According to the European Tyre and Rubber Manufacturing Association (2018), the global tyre output is estimated at 1.5 billion units per year, which will all eventually fall into the category of end-of-life tyres.1 Over the last 18 years, recovery rates for tyres have increased in Europe, and the cost of recycling has decreased due to both efficiency in management structures and new recovery routes. This shift shows that products derived from end-of-life tyres can be legitimately recognised as a valuable secondary material. About 2.6 million tonnes of end-of-life tyres (ELT) are recovered annually in Europe and 600,000 tonnes of used tyres are either reused or sent for re-treading, so the tyre industry has promoted promising economic activities that are beneficial to the environment while also creating over 10,000 jobs2, but there is still much more to be accomplished. Therefore, Bridgestone is seeking viable business models to continue improving this situation and to continue its mission, “Serving Society with Superior Quality”3. To that end, a cross-functional team from Bridgestone and R2π was brought together in workshops to gain a deeper understanding of the current business model and context within the market as well as to innovate new business models. Based on internal and external strengths, weaknesses, opportunities and threats identified within their current business model and context, they generated and explored multiple options for future circular business models. Thereafter, they further detailed these options and mapped out bold steps required to achieve the new business models. Team members identified their most critical assumptions and planned out roadmaps to allow them to test these assumptions and move forward towards implementing a more sustainable and circular business model