David Warren
drwarren1977@yahoo.co.uk

CREATING NEW VALUE FROM
GREEN VALUES
Five drivers of eco-initiatives in
            business
                          Competitive
                         opp...
Porter’s Generic Strategies model
            (adapted)

                          Lower-cost
  Competitive Advantage



 ...
First approach: Eco-Efficiency

                         Lower-cost
                                               Eco-Eff...
First approach: Eco-Efficiency
• Creating more value with
  less impact
   – Competitive advantage is
     predominantly a...
Second approach: Beyond Compliance
            Leadership

                            Lower-cost
                        ...
Second approach: Beyond Compliance
            Leadership
• Differentiate against
  competition by
  promoting green effor...
Third approach: Eco-innovation

                          Lower-cost
                                                Eco-E...
Third approach: Eco-innovation
• Creating products and
  services specifically for
  the green market
Fourth approach: Environmental Cost
            Leadership

                            Lower-cost
                       ...
Fourth approach: Environmental Cost
             Leadership
• A clear environmental cost
  strategy that enables both
  co...
Consumer value from each strategic
           approach
  Is this simply the                                               ...
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Creating New Value From Green Values

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  • Competitive OpportunitiesAccess new marketsOperational efficienciesBrand / Image benefitsImprove relationshipsCompetitive ThreatsResponding to competition / category shiftReputation managementLegislationEnforced responseStakeholder ExpectationsConsumer Shareholders Employees Suppliers & partners Responsibility Reduce environmental impact
  • A strategic approach sets a long-term vision as to the competitive advantage we’re trying to achieve with our green initiatives.
  • Very few examples in this quadrant as this is not a strategic approach that companies need to promote in order to realise the benefits.
  • Three conditions for this to work: - consumers must be willing to pay for the costs of ecological differentiation reliable information about product’s environmental performance must be available to the consumer differentiation should be difficult to be imitated by competitorsMade of Bavarian leather, Noon Solar’sCorland Solar Powered Bag incorporates a flexible solar panel into the body of each bag, which allows for charging a phone. Collecting energy with the bag is simple. The bag can be placed in a window with the panel facing towards the sun at work, home, at a café, or while walking/biking around town. Even on cloudy or rainy days, energy is collected through the UV light of the sun. The battery pack has a green indicator that lights up when it's charging. New-Zealand-based Beauty Engineered Forever produces a range of environmentally-friendly household cleaning products from natural ingredients and essential oils that are not harmful to the environment and safe for consumers. The packaging has been designed to connect with the customer on a personal level with playful and cheeky pick-up lines, such as “I’ll do your dirty work” and “I’ll make it all white.”By using GE's Earth Rewards credit card, consumers ensure that a portion of their net expenditure will go to offsetting the emissions created by their purchases and activities. For example, spending USD 25 contributes enough to offset the emissions associated with running a typical refrigerator for a month. Spending USD 500 off- sets the emissions from driving almost 1,500 miles in an average car.
  • Creating New Value From Green Values

    1. 1. David Warren drwarren1977@yahoo.co.uk CREATING NEW VALUE FROM GREEN VALUES
    2. 2. Five drivers of eco-initiatives in business Competitive opportunities Competitive Responsibility threats Stakeholder Legislation expectations
    3. 3. Porter’s Generic Strategies model (adapted) Lower-cost Competitive Advantage Differentiation Organizational Processes Products & Services Competitive Focus
    4. 4. First approach: Eco-Efficiency Lower-cost Eco-Efficiency Competitive Advantage Differentiation Organizational Processes Products & Services Competitive Focus
    5. 5. First approach: Eco-Efficiency • Creating more value with less impact – Competitive advantage is predominantly achieved through reduced operating costs • By towing its Boeing 747-400 aircraft to take-off areas at London airports during December Virgin said it could save up to two tonnes of fuel per flight.
    6. 6. Second approach: Beyond Compliance Leadership Lower-cost Eco-Efficiency Competitive Advantage Beyond Differentiation Compliance Leadership Organizational Processes Products & Services Competitive Focus
    7. 7. Second approach: Beyond Compliance Leadership • Differentiate against competition by promoting green efforts – primarily about enhancing reputation
    8. 8. Third approach: Eco-innovation Lower-cost Eco-Efficiency Competitive Advantage Beyond Differentiation Compliance Eco-Innovation Leadership Organizational Processes Products & Services Competitive Focus
    9. 9. Third approach: Eco-innovation • Creating products and services specifically for the green market
    10. 10. Fourth approach: Environmental Cost Leadership Lower-cost Environmental Eco-Efficiency Competitive Advantage Cost Leadership Beyond Differentiation Compliance Eco-Innovation Leadership Organizational Processes Products & Services Competitive Focus
    11. 11. Fourth approach: Environmental Cost Leadership • A clear environmental cost strategy that enables both cost savings (either directly or indirectly) and has a lower environmental impact than the competition.
    12. 12. Consumer value from each strategic approach Is this simply the Can a profit be basics of ethical generated with business? (I Operational this approach? Lower-cost sincerely hope so) excellence from Enables green consumers to Competitive Advantage initiatives not save money by directly seen by being green consumers Enables the consumer to be Differentiation Shared eco- green / feel values green through usage. Are consumers Has Green Wash / Organizational Processes Products & Services willing to pay Green Fatigue more? made this approach less effective? Competitive Focus

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