creating new value from green values
DESCRIPTION
TRANSCRIPT
Five drivers of eco-initiatives in business
Competitive opportunities
Competitive threats
Legislation Stakeholder expectations
Responsibility
Porter’s Generic Strategies model (adapted)
Competitive Focus
Com
petiti
ve A
dvan
tage
Organizational Processes Products & Services
Diffe
renti
ation
Low
er-c
ost
First approach: Eco-Efficiency
Competitive Focus
Com
petiti
ve A
dvan
tage
Organizational Processes Products & Services
Diffe
renti
ation
Low
er-c
ost
Eco-Efficiency
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.
Second approach: Beyond Compliance Leadership
Competitive Focus
Com
petiti
ve A
dvan
tage
Products & Services
Diffe
renti
ation
Low
er-c
ost
Eco-Efficiency
Beyond Compliance Leadership
Organizational Processes
Second approach: Beyond Compliance Leadership
• Differentiate against competition by promoting green efforts– primarily about
enhancing reputation
Third approach: Eco-innovation
Competitive Focus
Com
petiti
ve A
dvan
tage
Products & Services
Diffe
renti
ation
Low
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ost
Eco-Efficiency
Beyond Compliance Leadership
Eco-Innovation
Organizational Processes
Third approach: Eco-innovation
• Creating products and services specifically for the green market
Fourth approach: Environmental Cost Leadership
Competitive Focus
Com
petiti
ve A
dvan
tage
Products & Services
Diffe
renti
ation
Low
er-c
ost
Eco-Efficiency Environmental Cost Leadership
Beyond Compliance Leadership
Eco-Innovation
Organizational Processes
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.
Consumer value from each strategic approach
Competitive Focus
Com
petiti
ve A
dvan
tage
Products & Services
Diffe
renti
ation
Low
er-c
ost
Is this simply the basics of ethical
business? (I sincerely hope so)
Has Green Wash / Green Fatigue
made this approach less
effective?
Are consumers willing to pay
more?
Can a profit be generated with this approach?Operational
excellence from green initiatives
not directly seen by
consumers
Enables consumers to
save money by being green
Shared eco-values
Enables the consumer to be
green / feel green through
usage.
Organizational Processes