This document discusses strategies for achieving economies of scale in waste management. It outlines various political, economic, financial, legislative, and social factors that influence economies of scale. It recommends tailoring products and services to niche customer needs to increase margins. The document also discusses business planning considerations like removing fixed costs, upselling/cross-selling, and raising prices. Finally, it outlines opportunities from integrated waste management like effective pollution control and waste minimization programs.

1. Ripsy Srivastava
Vikram Tuli
Great Lakes Institute Of
Management, Chennai

2. Achieving the break-even point
Target smaller,
more attractive
niches rather
than the broader
market
Tailor your
With higher
products and
margins you may
services to those
be able to
niche needs,
further reduce
providing more
your break-even
value to the
point
customer
Provide more
value to build
greater brand
equity, with
positive effects
on price, margin
and/or share

3. Break-even volume = Fixed Costs / (Contribution Per Unit)
Where:
Contribution per Unit = (Revenue less all variable costs) /
(Number of Units)
Do Qualitative and quantitative assessment of the waste management system and also
offer training to the housekeeping staff
Waste and recycling collection containers are a valuable asset and can play an important
role in an overall solution to lower costs, increase revenues and improve sustainability.
Raise your price
Remove fixed costs from your system
Up-sell and Cross-sell

4. Business plan for achieving
economies of scale
Various • Political
factors • Demands and Constraints
that • Economic and Financial
influence • Legislative
• Social
EOS:

5. Political :
• Partnership working between tiers of
government
• Transparency and public trust
• An integrated approach across waste streams

6. Demands and Constraints
• Within local authority boundaries, waste
management optimisation assessments need to take
into account the variations in geographical
population spread.
• These assessments predominantly focus on
reviewing differing technologies that will achieve
similar performance targets at a given geographical
scale.
• However they may also review a range of service
integration and authority aggregation options.

7. Economic and Financial
Access to capital, be it public or private, in the form of
outside investments, loans,
grants, or subsidies, plays an important role both in
programme planning and realisation.

8. Legislative Factors
• Rapidly changing legislative environment needs to
be considered in evaluating opportunities for
economies of scale as it makes the development of
long-term, larger waste management facilities higher
risk and less attractive.
• These changes on legislation might affect the supply
of waste feedstock or the markets for end products
from waste processes and therefore the financial
performance of any technology.

9. Social Considerations
The development of public awareness programmes,
involving the public in the ecision-making processes
Aggregation across Urban, Suburban and Rural
communities

10. Strategy for competing with existing
players
Local conditions
significantly determine The number of collection The distance to disposal
which systems would be vehicles arriving during and the local costs of
most cost-effective. The peak hours and the fuel and driver salaries
Every part of the station
density and moisture overall traffic from the will affect decisions on
needs to be designed in
content of incoming transfer station to the whether to spend more
light of the objective of
waste clearly effect disposal site will affect for lighter weight trailers
saving money.
decisions about whether decisions about whether and discharge systems
to have a loading system to have a storage which enable higher
which provides system. load weights.
compaction.

11. Waste Management not considered an important component of Sustainability
Several constraints which restrict this development are –
Technical Constraints
• Solid waste generated is dumped at many undesignated sites (e.g., open areas, water
channels, streets, etc.). As a result, improving the disposal site, have little impact on
the overall solid waste management effectiveness.
• The low collection coverage is a bottleneck in the overall solid waste management
system in the city
• The lack of research and development activities in developing countries leads to the
selection of inappropriate technology in terms of the local climatic and physical
conditions, financial and human resource capabilities, and social or cultural
acceptability.

12. Financial Constraints
• Solid waste management is given a very low priority in developing countries, except
perhaps in capital and large cities. As a result, very limited funds are provided to the
solid waste management sector by the governments
• In addition to the limited funds, many local governments in developing countries lack
good financial management and planning.
• over 90% of the annual budget provided for solid waste management gets used up
within the first six months
Institutional Constraints
• There are often no clear roles/functions of the various national agencies defined in
relation to solid waste management and also no single agency or committee
designated to coordinate their projects and activities.
• The lack of effective legislation for solid waste management, which is a norm in most
developing countries, is partially responsible for the roles/functions of the relevant
national agencies not being clearly defined and the lack of coordination among them
• An enhanced economy enables more funds to be allocated for solid waste
management, providing a more sustainable financial basis

13. Economic Constraints
• An enhanced economy enables more funds to be allocated for solid waste
management, providing a more sustainable financial basis
• The weak industry base for recycling activities is a common constraint for the
improvement of solid waste management in developing countries
Social Constraints
• Negative perception of people regarding the work which involves the handling of
waste or unwanted material
• Insufficient resources available in the government sector
• The lack of public awareness and school education about the importance of proper
solid waste management for health and well-being of people severely restricts the use
of community-based approaches in developing countries.

14. Sales and Marketing plan for different client segment
Publicity: Send news releases to all of the major newspapers in Karnataka. Publication of
news articles about Waste Wise Management and Consultancy recycling will lend great
credibility and be an excellent way to let all target markets know about this new,
innovative business and the solutions it provides for municipalities , industries and users
of compost or fertilizers. Similarly seeking publicity in the form of news stories from local
(Bengaluru) radio and television stations.
Advertising: Utilize direct mail and face-to-face promotional strategies to raise
awareness about WWMC’s products and services in the target markets. Newspaper
advertising may also be used. Radio and television ads are not certain, we will evaluate
their effectiveness before further implementation.
Internet: Building content heavy website geared toward educating potential customers
about the benefits of our products and services. All literature, business cards, etc. will
include the necessary details of the company
Alliances: Forming alliances with fertilizer manufacturers to use our product in their
fertilizer and/or distribute our product for us.

15. Value proposition
Municipal Solid Waste to the relative wealth of the countries
Potentially lucrative areas :
-Scrap metals
-Plastics
-Bottles
-Automotive batteries
-Paper/cardboard

16. Opportunities from
Integrated Solid Waste Management
• Effective pollution control systems (such as leachate treatment and gas capture
systems) leading to economic gains due to improved efficiency, overall cost reduction,
minimal environmental impacts and social acceptance can be developed.
• Strategically planned waste minimization and green procurement programmes leading
to more sustainable consumption patterns along with economic development .
• Facilitates recycling of valuable resources such as plastic, glass, paper and metals,
recovery of alternate energy sources such as Refuse Derived Fuel (RDF) from high-calorific
value fraction of waste, recovery of biogas or compost from biodegradable waste

17. Wastes and their Recycling Potential
Types Of Waste Recycled Products Recycling potential
Biomass Composts Future of compost depends on its
environmental and
agronomic quality and the dynamism of its
market
Paper and cardboard Recovered paper (recycled paper) Increasing demand in Asia, particularly in
PRC
Plastics Recovered plastics Increasingly stringent regulations and
growing demand for
recovered plastics in Asia, favouring
development and
internationalization of this market.
Ferrous Metals Steel Scrap Metal , can be used in many ways
after melting.
E-wastes Recoverable Materials Estimated that 10million computers contain
135,000 metric
tons of recoverable materials, such as base
metals, silicon,
glass, plastic, and precious metals.

18. Attracting Investments from Financial Partners
Environment - The environment affects all aspects of our lives, from the air we
breathe, to the way we power our homes, to the parklands in which we play.
Waste Management companies is committed to helping provide renewable
resources to reduce our dependence on fossil fuels, and to conserving and
maintaining wetlands, wildlife habitats and green spaces for people's
enjoyment. Understanding the importance of the environment, Waste
Management supports organizations and programs that preserve and/or
enhance natural resources.
Green Economy for Developing Countries – UNEP’s green economy status
Advanced technology and Tools used by Developed Nations – Business
Perspective and inclination.
Green Jobs in Renewable Energy – Job prospects.