creating new value from green values

CREATING NEW VALUE FROM GREEN VALUES

David Warrendrwarren1977@yahoo.co.uk

Five drivers of eco-initiatives in business

Competitive opportunities

Competitive threats

Legislation Stakeholder expectations

Responsibility

Porter’s Generic Strategies model (adapted)

Competitive Focus

Com

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Organizational Processes Products & Services

Diffe

renti

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Low

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First approach: Eco-Efficiency

Competitive Focus

Com

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Organizational Processes Products & Services

Diffe

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ation

Low

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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

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Products & Services

Diffe

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Low

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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

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tage

Products & Services

Diffe

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ation

Low

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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

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Products & Services

Diffe

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Low

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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

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Products & Services

Diffe

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Low

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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