Tom Szaky Case
Intro
TerraCycle was founded in 2001 by Tom Szaky and Jon Beyer, two students from Princeton University with great ambitions. Through research at the Rutgers University Eco-Complex, both partners created their main product “All Purpose Plant Food”, an environmentally friendly and “all natural fertilizer used to foster growth in plants” (BOOK). In 2003, Tom Szaky took an extended leave to pursue this company full-time and bring it to the next level. Despite a certain amount of growth, the largest breakthrough occurred in 2004 when Home Depot accepted to sell the product through its online system. This soon created a chain reaction where many retailers across North American generated interest in this new eco-capitalist business. Companies such …show more content…
Both partner’s mission is to reduce waste and improve the earth’s environment. By transforming waste that could otherwise accumulate and pollute, TerraCycle generates a high-quality organic plant food. The company does this without harming the environment, but rather by saving it one step at a time. Basically, it is a known fact that North Americans dispose a great amount of what they buy in a year or less. In fact, data collected from the State of Garbage in America in 2004 estimates that 64.1% of municipal solid waste is land filled while only 28.5% is recycled and composted. The rest (7.4%) is combusted in plants.(SOURCE WEBSITE)Thus, through its process and finals products, TerraCycle hopes to educate the population on the possibilities of eliminating pollution and renewing the planet’s …show more content…
This study supports that many business professionals follow the green trend when making buying decisions.
TerraCycle, however, has a unique business model that differentiates itself from other strategic groups, that is TerraCycle products do not have the usual higher price point associated with organic product choices. COST DIFFERENTIATION?
EXTERNAL COMPETITION;
- Very competitive industry, significant gross sales
- 2 main competitors: Scotts Miracle-Gro Company: wide variety under DIFFERENT BRAND NAMES. Operates globally, quite big.. Number 1 selling products in almost every market. BRAND NAME RECOGNITION AND CUSTOMER LOYALTY. (concentrate of which a small amount was added to water to feed plants) NOT ALL NATURAL the company donates $0.05 per bottle or collectors can opt to save ten square feet of rainforest through the Nature Conservatory in their name. This program promotes the TerraCycle name positively and reinforces their company image of being environmentally-conscious in the pubic arena. More importantly, this is how TerraCycle acquires a large amount
TerraCycle was founded in 2001 by Tom Szaky and Jon Beyer, two students from Princeton University with great ambitions. Through research at the Rutgers University Eco-Complex, both partners created their main product “All Purpose Plant Food”, an environmentally friendly and “all natural fertilizer used to foster growth in plants” (BOOK). In 2003, Tom Szaky took an extended leave to pursue this company full-time and bring it to the next level. Despite a certain amount of growth, the largest breakthrough occurred in 2004 when Home Depot accepted to sell the product through its online system. This soon created a chain reaction where many retailers across North American generated interest in this new eco-capitalist business. Companies such …show more content…
Both partner’s mission is to reduce waste and improve the earth’s environment. By transforming waste that could otherwise accumulate and pollute, TerraCycle generates a high-quality organic plant food. The company does this without harming the environment, but rather by saving it one step at a time. Basically, it is a known fact that North Americans dispose a great amount of what they buy in a year or less. In fact, data collected from the State of Garbage in America in 2004 estimates that 64.1% of municipal solid waste is land filled while only 28.5% is recycled and composted. The rest (7.4%) is combusted in plants.(SOURCE WEBSITE)Thus, through its process and finals products, TerraCycle hopes to educate the population on the possibilities of eliminating pollution and renewing the planet’s …show more content…
This study supports that many business professionals follow the green trend when making buying decisions.
TerraCycle, however, has a unique business model that differentiates itself from other strategic groups, that is TerraCycle products do not have the usual higher price point associated with organic product choices. COST DIFFERENTIATION?
EXTERNAL COMPETITION;
- Very competitive industry, significant gross sales
- 2 main competitors: Scotts Miracle-Gro Company: wide variety under DIFFERENT BRAND NAMES. Operates globally, quite big.. Number 1 selling products in almost every market. BRAND NAME RECOGNITION AND CUSTOMER LOYALTY. (concentrate of which a small amount was added to water to feed plants) NOT ALL NATURAL the company donates $0.05 per bottle or collectors can opt to save ten square feet of rainforest through the Nature Conservatory in their name. This program promotes the TerraCycle name positively and reinforces their company image of being environmentally-conscious in the pubic arena. More importantly, this is how TerraCycle acquires a large amount