KWANTLEN POLYTECHNIC UNIVERSITY
SCHOOL OF BUSINESS
GREEN-TECH: BIO-FUELS HIGH GROWTH STRATEGY
TMAS 5150: NEW PRODUCT & SERVICES DEVELOPMENT
SUBMITTED TO: BURKE, PHAEDRA
SUBMITTED BY: RAVNEET KAUR
STUDENT ID: 100378945
SUBMITTED ON: October 19, 2019
Green-Tech (Start-up Company) was initially established during the year 2006. The main owners of the company were private investors. Fernando Bruteque, was one of the vice president of Green-Tech Inc. The vision of company was to attract and deal with larger customers such as Shell. The main goal was to how they can manage their residues or to convert their residues into higher-value products. Furthermore, the mission of Green-Tech was to how they can develop, manufacture and market mobile equipment for the production of bio-oil from bio-mass wastes and residues. In September 2009, Green-Tech became an official start-up company, consisting of one Chief Executive Officer (CEO), two vice-presidents, three part-time engineers and two technologists. Additionally, there was an increasing demand to extract energy from renewable resources. It had two types of potential customers- smaller and larger. Smaller clients were those who had their own farms and larger clients were those who were interested in transforming their energy portfolio to include alternative energy products. Along with that, the corporation had two main types of rivals (large-scale competitors and small-scale competitors).
What is the Green-Techs related industry and market? What are the trends? How do government policies affect these markets?
According to my point of view, Green-Techs related business was the production of bio-oil / wastage management which is a form of bio-fuel. Throughout the year 2006, Green- Tech had been assigned to refined, assembling and marketing mobile and stationary instrumentation so as to supply bio-oil (bio-fuel) and other products from biomass wastes and other junk materials. Besides, once we bring-up trends, a large variety of various markets were curious to derive energy from distinct renewable resources. The government policies influence these markets in many ways-
Taxation- Tax program can have an effect on the price of running business. An increase in organization taxation will principally influence the bottom line of the business.
Political Stability- Business tasks will also be affected once there is a scarcity of political stabilities in some countries. Political stability is vital for those organizations that work globally like Green-Techs.
Apart from this, the company can also be impacted when governments modify regulations and laws.
What is the structure and financial position of the company?
A normal company structure consists of various departments that contribute to the companys overall mission and goals. As for Green-tech, it is a start-up company, together with a chief executive officer for managing the overall operations of the business and to make effective corporate decisions, two vice-presidents to develop financial strategies, three part-time engineers and two technologists. Talking about financial position, company had bit of funds. Due to the partnership, Green-Tech accepted the proposal of selling units to the American University at a minimal price of Cdn$650,000 (total revenue) for experimental unit and capital expense of Cdn$900,000 for fully commercial unit. The companys overall expenses were $583,863 at the end of the year (April,2011). In order to enter into the new market, the options for Bruteque were to further create some unit sales through research partnerships, negotiating contracts based particularly on the client needs. Moreover, to tackle these difficulties, Bruteque should develop relationships with different market business players.
What is the dilemma that Green-Tech faces regarding R&D development versus product availability?
As a result of huge market and technology, variety of purchasers from everywhere the globe were interested in Green-Techs prototype unit. One of the main problem that company faces relating to development and product availability was that no full-time engineering staff were employed. It had only engineering investors which were always push for R&D but having no business commercialization experience. In addition to this, the technology that they used for new product introduction was also not efficient. For product availability, company had to partnership with other market players to increase unit sales. Bruteque knew that once the company started to enter into the new market, it was difficult to grow quickly. Since the company was new and still growing, only few clients were ready to take the risk of an outright purchase.
What are the recommendations for Green-Tech? What should they do to compete with different markets?
By analyzing the overall internal and external analysis of Green-Techs, I will offer some recommendations which could be helpful for its core competencies and capabilities, as well as reduce its probabilities for future risks and threats. Firstly, the firm should develop stronger relation with customers which will allow the company to work more closely toward different markets. Secondly, they need to develop distinctive promoting techniques. These techniques can involve new communicating strategies and interact customers towards the brand. This can be only possible by making consumer co-producers for the brand. Finally, the corporate should adapt to completely different cultural aspects of different markets in order to connect better with different target groups as well as they should attempt to expand their market into new regions. This will be done through product diversification. By introducing new product lines, the company will be able to enter into existing markets.
Overall, this case is all about new product prototype unit. It included some difficult queries associated with Green-Techs business unit. One of the main questions that need to be addressed during this case is how could Bruteque help position the start-up company for success with number of distinct competitors. Personally, I would suggest Bruteque to use an efficient poisoning, marketing mix (Product, Price, Place and Promotion) and one of the effective analysis tools (SWOT, PEST and Porters Five Forces) to handle this downside. The corporation should also try to build relationships with alternative competitive companies (Exhibit 1).
533400015240000-13335019049900280035017145100-13335025717500Exhibit 1: SWOT ANALYSIS
Strong brand imageExpansion in emerging markets
International distribution network Business enhancement
High investment in R&DPartnerships with different
High focus on innovationfirms
-11366531305500Focus on market research
Premium prices for most productsIncreased competition
Standard procedures for all itemsIndependent team players
Fighting the challenge of reproductionPrice wars by competition