Grg Rubber Case Study Analysis

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Table of Contents
INTRODUCTION2
SECTION 1: COMPANY ANALYSIS3
SECTION 2: CUSTOMER ANALYSIS5
SECTION 3: FINDINGS & RECOMMENDATIONS6
CONCLUSION7
REFRENCES8
APPENDIX
APPENDIX 1: GRG MODES OF OPERATION
APPENDIX 2: COMPONENTS OF GRG'S BUSINESS MODEL
APPENDIX 3: CUSTOMER SEGMENTATION
APPENDIX 4: FINDINGS AND RECOMMENDATIONS

INTRODUCTION
A subsidiary company of Malaysia based, Petra Group, a copmany dedicated to offering solutions to social and environmental problems (Francesch-Huidobro & Woo, 2009), Green Rubber Global (GRG) was established around the invention of an environmentally friendly reactant and process to recycle rubber (refer to appendix 1). DeLink, the reactant, can be used to break down vulcanized rubber and return it to a workable state able to be reused as an alternative to virgin or synthetic rubber. Branded as Green Rubber, GRG’s product has wider applications than other rubber recycling products. Rising prices and shortages of natural rubber, global environmental movements, an abundance of waste rubber to be recycled and various government policies (European College Polymer College, 2003) (Eurpoean Union, 2005) aimed at ‘green’ recycling of rubber products, highlight some of the advantages GRG holds. Moving into the future, issues to be addressed include; sharper focusing of strategy apropos of the company’s mission, past failure of Green Rubber and its effect on their product’s reputation, diluted significance of ‘green’ branded products, and the use of alternate rubber recycling methods.

SECTION 1: COMPANY ANALYSIS
Refering to appendix 2 to asses the components of GRG’s business model (Hamel, 2000); GRG’s main objectives are to revolutionise the recycling of rubber, achieve status as the world standard name for rubber recycling and develop new rubber products. With a laboratory in Malaysia allowing for continual R&D, technological innovation in chemical and manufacturing processes is a core competency of GRG. Connections and contributions to societal causes and projects place the company in a positive position to enhance the brand’s public reputation. Global patents and license for both DeLink and Green rubber provide GRG with the ability to offer a range of recycling solutions and hold considerable value for the future. Failure in the 90’s has led to some reputation and quality issues that need to be addressed along with issues related to green-washing. GRG offer customers three main solutions; 1) a high quality, environmentally sound alternative to increasingly scarce, expensive and environmentally questionable virgin rubber or less environmentally sound synthetic rubber, 2) An environmentally sound, cost effective method of recycling rubber, and 3) a cost-efficient, environmentally sound system for management of waste rubber. Taking into account the anticipated future demand for Green Rubber as an alternative to diminishing natural sources, and less environmentally sound synthetic alternatives demand for the Green Rubber product lines are expected to expand beyond the capacity that GRG is currently equipped to meet. Currently GRG presents with several issues related to promotion; general promotion of the products to relevant markets, promotion of quality testing to gain credibility, promotion of involvement and support of environmental initiaves and projects and inefficient use of influential stakeholders. Improved management to address these issues is expected to greatly enhance the credibility and in turn, adoption and sales of the product. As with all new innovations, speed to market is an issue of high importance to secure brand reputation. Despite an aggressive legal defense policy to prevent counterfeit products can damage quality and brand reputation.

SECTION 2: CUSTOMER ANALYSIS
Currently the majority of GRG customers are private businesses however large opportunities exist in public sectors. Changing government policies around the world regarding...
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