Innovation and Entrepreneurship at the Ecostore
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a) The activities on the entrepreneurial works is those which enterprises the human actions in order to pursuit the generation of value, through creating and expanding the economic activities, and by identification an exploiting the new products, processes and also the markets. And the entrepreneurship phenomena can be mentioned as the phenomena associated with entrepreneurial activity. Innovation is referring to be making new ideas as established things or improving the products or the services or the technologies (William B.Gartner, 1990). When considering the Eco Store Malcolm Rands and Melanie Rands had used environmentally friendly organic methods in growing up crops in their own land, and they also founded out then they have exposed in the countless toxic chemicals as they had to use cleaning and personal care products which are commercially available. And in order to use harmless chemicals in their products the couple dreamed of creating products which are healthier and are more sustainable products thus with this background the Eco Store was born in 1993 in New Zealand.
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Entrepreneurs are referred to those individual who has unique characters and personality. Entrepreneurship is the process in organization which involves a lot of people, and the phenomena which can also be resulted as a individual effort of people who work together, and the entrepreneurs are capable of involving their individuals as the workers or managers of their business, and from 1994 the Ecostore has been working in producing health products, house hold cleaning products that are eco-friendly an the body care, pet care and the organic gardening products which are plant based and the mineral based products which has greatly changes the lives of people and also the environment
b) The organizations moving towards the greener and environmental protection scheme is something that is very common in the current background and which is very important in maintaining the environment of the globe from getting harmed from the substance which may cause impact for the environment and the globe which we live in. and industrial units are supporting a lot in the pollution of the environment to a greater end thus the triple bottom line which has been practiced by many organizations are helpful in protecting the environment as well as the people and planet that is associated with the organizational and the industrial units. And when considering the Eco store the founders have made initiatives in recycling the plastic of packaging bottles, plastic collections from the roadside collection that has been recycled back in producing the packing materials, and the initiative in post consumer recycled plastic containers that has been taking place over the years can be mentioned as the green movement of Eco store in creation of innovation goods and services in the background
c) In the today’s fast paced world of industrial community and higher competition in the market units when people are approaching for product to buy apart from the price of the product they also use to consider the influence of brand in the product which they are buying the ingredients whether it would affect their health, the competitive advantage in buying product, the quality and the innovation and environmental protection of the products. Thus the consumers are deeply aware on the importance of the environmental protection for earth as well as the including of harmful toxic chemicals to the human body. Thus the Eco store was successful in attracting the extensive interests from the consumers in two main approaches. First on behalf of the organizations environmental protection concerns, and the product prevents a number of animal tests, and it also reduces the use of chemicals in and the adverse effects on the ecological chains, finally the use of packing materials which are being produced by recyclable materials. And on considering the health of the people, the founders have committed in finding the ingredients which are to be used in good health and are free toxins, and chemicals which may cause harm to the human body. Ingredients that may be harmful for the health and environment, the Eco store would not definitely doesn’t use and also the company is always looking for safe alternatives .
d) Information asymmetry is the activities on market economics, through various kinds of personal as well as the different understanding on the relevant information. And these may include the information which is often more favorable in the position, where these have the less information through more unfavorable positions in the background (Investopeida, 2017). For an example when the cars are being brought and sold in the country of New Zealand, there were two kind of cars in which are popular in the market, the goods one as well as the bad ones, the buyers are not well aware and informed as they are not willing to pay the average price in the used car market. But inferior car owner has sell his cars in a higher intrinsic price than that the others, and as a result more good old cars have been sold out in the market, and the decline of average cares have began.
At the beginning of Eco store, Malcon has found that the most of the people, who are mostly like him, badly wanted to fit into quality, eco-friendly life caring products to be used in their families, thus he has connected with the demand for the sustainable eco products, through the general markets as well as developed for the potential opportunity in creating, and on the other hand Malcom was also well aware on the damage o the chemicals which can be harmful for the environment as well, and most importantly the long term use of the chemicals can also pollute the natural environment consisting the air, water an the entering the food chain and can also have impact on the environment in the background (Chemical Substances, 2011)
a) With the development of environmental pollution and increased use of chemicals in the day to day life the harmless to the environment as well as the human body has begun to threat the people as the use of toxic chemicals has invaded the world in creating so many problems for people as well as the environment. Thus with this background taking steps in creating environmentally friendly products have been an initiative and a good move in the industrial units as the people are searching for the products that are not are harmful for the existence of human as well as the environment. And the use of organic products in the body and pet cleaning products is also and initiative move in the background. Thus the Rands couple has successfully initiated the advantage of the opportunity in the market to create their own business.
b) When considering the today world’s which is very concern on healthy products and on the other hand pollution of environment in terms of plastic and polythene usages, the people in the globe are faulty moving for products that are environmentally sustainable, and also the people are more concerned on health, thus with this background the business of Ecostore may increased in more terms, and also the most of the organizations are adapting on producing new products concerning the health factor in the current world thus with this background though their exist a good customer base for the Ecostore the competition is also increased day by day thus the organization should also focus more in customer demands prior to the production of new products in the markets and the organization should also focus in creating new products that meets the demanding market features in the background.
c) Analyse the business opportunities in realizing the market potential for a range of Ecostore innovations;
• Explain the nature of prior information that enabled Malcolm Rands to recognize an opportunity.
• Explain the cognitive properties that enabled Malcolm Rands to recognize the value of the opportunity. (10 Marks)
d) When considering the Ecostore current product bases due to their high concern on health factors and also for the organizations concerned on maintaining eco friendly initiatives the organization has very good brand image in the market with this background there lies a high potential in developing the new products with the same background where the company can initiate producing new products apart from the Ecostore lifestyle the company can produce new products that includes the skin care products, and cosmetics which has a high market value in the background. and cosmetics and skin care products through organic components may increase market reach of the organization in more terms.
a) In the beginning of the organization the business units had been mainly based upon the strategic entrepreneurship, and the use of external environment in finding the opportunities and also in creating the new products through innovation, Malcom’s very first innovation was mainly in breaking the pattern of interests. And the facing of potential risks which are huge, and also the entrepreneurs shouldn’t only have the spirit of the innovation , and also in having the courage which has to be tried and taking risks. And only in this background the innovation of products, technology, management , market , model, system and other aspects can be developed. When considering the opportunities for the products of the Ecostore there are only a limited products in the markets which are produced with organic substances and causing no harm to health which the market potential of the company can be increased, and on the other had though many large companies are highly focused on protecting the environment and also making strategies in environment protection not all the attempts as successful as the pollution rate is highly increasing, but the recycling of the plastic products by the Eco store can be another opportunity for the competitive growth of the entire organization. And on the other hand there are number of organization in the similar background are keenly interested in producing new products which are with the use of organic substances thus the growth of competition will be a challenge for Eco store and then currently the bio degradable packing materials has been used in packing materials which will also be an another challenge for the organization where the organization is still using recycled plastic in packing, and though the company is successful in recycling the plastic in the background not each and every quantity which has been sent out of the company is recycled back and this may cause harm back again to environment.
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b) The innovation of the Eco store has impacted many organizations in the business background in realizing the risk over their products in the market, thus as a result of this some organizations in the background including the suppliers and manufacturers had began in exploiting the Ecostore, which demands in giving the organization credit and name names. And in the beginning the company has gained many customer feedbacks as the organization was not very big and Malcom was lived in a country side and the customers have been from Oakland and the organization first business was selling dishwashing liquid. Though the organization has gained feedbacks through emails the organization has learned many things from the feedbacks which laid the foundation for the development of business in future terms.
And the Ecostore was also successful in producing and selling baby care products, specifically when the people are paid more attention on ecological environment, and the company’s product value has been in line with the consumers needs, thus a large amount of sales have been made by the company which continued to expand. The business of the Ecostore has begun to expand around the world, and the organization also has begun in taking corporate social responsibility, where the founder also won a number of honors, which includes the “the green ribbon” in 2002.
Eco store initial mode of business exploitation was through mail orders, where the company has been situated away from towns in the country, at the beginning there was no any brand, market positions, and no intellectual property in the background. And the company began to sell their products through mail orders which were very cheap at that time . Currently the sale of products has been developed immensely as brick and mortar store and online stores.
c) As mentioned above the mail order business, which was also known as the direct mail marketing, where the seller do not sell bulk of mailing through advertisements or newspapers in magazines, the buyer orders by mail, and the delivery is being made through freight express delivery and or cash on delivery . Though these methods are very traditional are highly based on small professional companies, specifically developed fro the customers in the rural community, this was very successful in developing the business for Eco store
d) Today the company is using social media channels in promoting their products and influencing the people as to remained as their customers who are living healthy, safe and environmental friendly lifestyles through the TV interviews and as well l as using the social media platforms. And also with the development of the market units and changes in the market context the products of the Eco store are currently appear to be in supermarkets, franchised physical stores, and even in the internet or online sales. Currently the business of the organization is expanded all over the world, and the organization if focusing more in advancing their sales models as they are ready in starting up developing business units in Asian markets.
a) In the very beginning days the Ecostore has been successful in making profits based on the strategic entrepreneurship, using the external environment in finding opportunities and creating new products through innovation. Malcom’s very first innovation is to break the pattern on interests and also through facing much risk. And in this way invocation in production, technology, management, market, model system and the other components have been achieved.
With the establishment of new channels the Ecostore has become a very large enterprise, where the company is focusing more on the corporate entrepreneurship and also innovation and entrepreneurship within the existing organizations in order to improve the performance and in increasing the growth opportunities. Many large organizations have developed the economy through entrepreneurship as the main body of their business, and through use of entrepreneurship in making growth rate which is stable, structural adjustment, conversion of power etc, thus these characteristics can be used in adapting and leading new normal development channels through economic aspects.
b) When considering the current trends in market over the global presence the Eco store has to develop strategies which suits the emerging trends in the market and also the organization has to be pay more attention to shareholders, employees, suppliers and also the customers, and the entrepreneurs has to be pay their continues attention on making more profit in the context, and each and every decision which are made by them are to be estimating the benefits and risks, which are to be considered in taking upon the account of earning the shareholder and the employees. And then in developing product branches, apart from the Ecostore lifestyle, the organization should also operate skin care as well as Carco Capture (Plastic sugarcane containers). And apart from that the entrepreneurs should assume more terms on being socially responsible, which may directly affect the environment and the society thus the organizations should take corporate social responsibility in contributing the society which is helpful in developing the good brand image among the market. Thus when the Ecostore has become a large company the organization has to use more and more opportunity in continuing to be increasing their competitive advantage.
With the case analysis that has been done above it is clear that the innovation and entrepreneurship is very important factors associated with a development of a business, and these feature are very need in order to retain in a market venture for a very long period of time. Ecostore can be mentioned as an organization that has used these two components in developing their business to world famous brands their innovative ideas, and the corporate responsibility in protecting the environment has made immense development changes in the organizational background. thus in order to remain continuously in the background the Ecostore has to pay more attention on the changing market needs as well as on developing over sustainable chain in order to increase its competitive advantage in achieving success.
Summary of the findings
Through looking at the case of Ecostore it is very clear that the each and every organization should make rational use of strategic entrepreneurship and the entrepreneurship . and in combining the entrepreneurs cognitive perspectives as well as the strategies that focus in developing the success values, right time in finding the opportunity, seizing opportunity, and the use of opportunism. Apart from that the process on taking the advantages of the opportunities, and through anticipating the opportunities in advancing with the information asymmetry, and in learning the isolation mechanism in maintaining the sustainable competitive advantage are very necessary aspects in achieving success for a business organization.
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