Integrating Management Strategy and Porter’s Five Forces Model for the Sustainable Recycling of Textile Waste

Abstract

The purpose of this paper was to address the compatibility of management strategies with the competitive needs of textile waste recycling companies by applying Porter’s model. In conjunction with Porter’s model, it is appropriate to assess the attractiveness of the industry based on the balance of opportunities and threats, which determines whether the industry is attractive or less attractive. From this assessment, it is possible to decide whether to remain in the given industry and to identify strategies that indicate success. In terms of the European Green Agreement, it is necessary to ensure the faster and more efficient development of the circular economy, with a focus on resource-intensive sectors, including the textile industry. Given the adoption of the EU Strategy for Sustainable and Circular Textiles in June 2023, it is essential to address the issue of sustainable textile waste recycling. The importance of this strategy lies in strengthening the industry through reuse and repairs, as well as addressing the problem of textile waste. The prioritization of textile waste recycling has gained even greater importance with the arrival of the new automotive company, Volvo Cars, in eastern Slovakia. This development underscores the need for enhanced recycling efforts to manage the expected increase in industrial textile waste associated with the automotive sector’s expansion in the region. In Slovakia, four companies are involved in textile waste recycling: SK-TEX s.r.o., PR Krajné s.r.o., HOVEBA s.r.o., and LYKOTEX Slovakia s.r.o. This paper provides information on the possibility of expanding textile waste recycling capacities in eastern Slovakia. The quadratic graph method was used to identify an optimal location for textile waste recycling. The results of this analysis will help determine which enterprise in eastern Slovakia can enhance its competitiveness by leveraging this strategic location.