Feed Resource Recovery Case Study Solution
Introduction
The source of energy is most important in this modern age of technology. Whereas, entrepreneurial activities has increased to build up company based on some new and innovative ideas, with disruptive approach in the market that could be tough and competitive as well. Meanwhile, Shane has been graduated in psychology, and enrolled in MBA in Babson college had enabled Shane formulate his ideas, and learn to understand and play with numbers in the practical world.
He know that how business world worked, but he lacked in experience, and knowledge that was required to enter in business alone. Furthermore, the idea of the Shane was to open company that was not seriously harmful to soil or the environment, but it should be environmental friendly. So, his intention to green technology that is harmless to soil and environment further made strong Shane in his Idea.
Shane was working on idea to produce the byproducts from the organic food wastes to be collected from many houses, restaurants, hotels, and supermarkets as well. This idea worked with the composting technology. In which anaerobic digestion method was much cheaper and easier to implement as compared to other mode of technology in composting. Furthermore, Shane was under two consecutive problems, finance, and operations.
Shane has been under two major problem one that by whom financing should be done. Since, he has many options under considerations. Whereas, the use of technology in the business was also matter of art for the Shane. Indeed, dilemma was to either involve in the decentralized wastage, or centralized wastage collection system. Meanwhile, where should company focus in the market, the large producers of food waste in large quantity or small decentralized producer of food waste in small quantity
Question 1
Long and short source of competition
The idea of the business is to create the biogas for the distributed electricity generation unit. The product and service of the company is to produce the biogas from the biodegradable waste into the fuel. Furthermore, it can be determined that company has two source of competition in short-term one is customers’ preferences, and long term source of competition is changing market trends.
The customers are actually short-term source of competition for the company.For Example a company have only one product to sell. But, its customers require more alternative products. So, it would create competition in the market among companies to meet with customer needs, and fill the gap. Since, there are many options available to customers to choose from. So these options available to customers are source of competition to the company. So, to compete with the competition company has to provide alternate products to customers so that they are attracted to company.
Similarly, the second long-term source of competition is changing market dynamics, and trends. The dynamics and trends refers to changing rules, regulations, ethical, and legal standards due to increased complications such as green technology, being environmental friendly, and global warming awareness, and other anti-soil actions or practices in the market that has impact on the company.
So, it can be determined that there are many complications and complexities in the market because, the short-term source of competition could be addressed with providing alternative options to the customers in the market. But, the changing market dynamics, and trends are long –lasting would have effect on the company, and market as whole. Thus, it has to follow and meet with those standards.
Question 2
The business is idea is very unique in nature since there are some plants in the Europe that are centralized, and are put at one place. But, the profit from these plants is not considerable for the venture capitalists. However, there might be some potential reasons behind the no considerable profit in the centralized system waste composting technology.
Indeed, it can be determine that the business idea is based on the decentralized system of waste conversion through the anaerobic digestion technology which is considered one of most feasible in the market. Furthermore, the decentralized model in the retail food market was much attractive to venture capitalists because, they had plenty of questions with themselves, but they also has loved, and were interested in the business, due to its clear direction in the business.
Meanwhile, after a good research in the market it could be understood that previous model of business has no growth in the market due to complicated model. However, the Feed or the R2 is one of simple way to eliminate the waste, and produce power from it without making any significant investment, and it also did not required much space at the grocery stores. So, these feasibilities has created interest of venture capitalists given that product has huge future growth............................
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