recycling strategy at veka upvc windows
1. What have been the major pressures on Veka which caused it to change its operations strategy?
Primarily it appeared that the motivation for Veka was entirely due to the changes in the legislative environment in its home market, Germany. Their new environmental laws put responsibility onto manufacturers to ensure the collection and recyclability of their products. Companies like Veka just had to do something. However, it may have also been the case that Veka understood that the new environmental laws were just the first step in a continual process of extra legislation on environmental sustainability. Perhaps there was no point in trying to get round the new regulations when there would be even tougher regulations round the corner? Perhaps also that the executives of Veka were motivated by genuine concerns regarding environmental sustainability.
2. What opportunities for the operation do you think were created by the move to recycling?
This is a great example of how a company’s operations capabilities can influence its market strategy. Once it had mastered the operations processes which were necessary for UPVC recycling (and especially if it was better at doing this than any of its competitors) it could actively exploit that in its market place. Positioning itself as the ‘environmentally friendly window maker’ could actually win it extra business. Not only that, but the intrinsic advantages of recycling became more apparent once the company had developed its recycling capabilities. Most particularly, it had an assured supply of material available at a predictable price.
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