Question

Questions like how “green” a company should be if it is pursuing a low-cost strategy in an increasingly environmentally conscious society, or if following a differentiation strategy, how much extra will end users (customers) pay for a green option, are increasingly being considered. Consider your own purchasing decisions and habits. How important are green options? Or is it just about price? Consider these questions from a small purchase perspective (e.g., a bottle of ketchup or a dish detergent) and from a large purchase perspective (e.g., an automobile or an out-of-country vacation). Referencing your current employer (or a past-employer if you are not currently employed), do they have an intentional green policy and/or strategy? If yes, explain it strategically. If no, should they and make a strategic argument it? explain in 600 words with some companies examples

Answer 1

If there is limited cash available and limited disposable income that it is all about just price of the product. So if the green product is too expensive, which often is the case, then one will go for products which are cheaper, which are often plastic. Green products are also not usable for several alternatives, which limits the usage of such products in terms of price. For example in a simple case such as a plastic bag, now I can carry anything in such a bag because it can sustain wet products and dry, but on the other hand, I can't use a paper bag for wet items even if I have paid a greater amount than the plastic one for the paper bag. Thus it is about the price and usability.  

Thus from a small purchase perspective like a bottle of ketchup or a dish detergent, I would go for the one which has a greater value for money. Green options are often expensive and are not easily usable, for example a green detergent wouldn't have harsh chemicals in it, but it would not be useful to kill all kinds of germs. Thus sometimes green options often have certain limitations which restrict consumers from purchasing them.

From a large purchase perspective, I would go for green options because the quantity of pollution they generate are far lower than that of combustion cars and thus would also opt for out of country vacations which don't harm the environment extensively. Thus from a large purchase perspective, I would go for green options because they have the ability to reduce pollution levels to a large extent.

Referencing the employer, they do have an intentional green policy because they have to follow certain guidelines in order to adhere to the rules and make the brand more consumer conscious. Thus they do focus on creating a final product which is more consumer friendly and not harsh on the environment. McDonald's is the employer wherein it reused the coffee byproduct to make the cups, in order to leverage it strategically, they purposely advertise so that the consumers are able to relate and are prone to buy such products. They are able to relate with the global issue of climate change and thus are able to seek advantage.

Thus several companies in the same way have sought to reach to more number of consumers by making them aware that they are conscious about climate change. Companies such as Zara, H&M, Starbucks are increasingly making an effort to increase customer reach via such recycling methods, and thus because of the scale, they try to increase profitability and ensure sustainability. Clothing brands focus on trying to entice consumers to bring in their old clothes and give it in exchange of the new ones which are recycled and green. They also sell these products at a premium price so as to take advantage of the go green initiative instilled by several firms in the industry and social media.