Innovation Case Study Analysis: ecostore: The Carbon Capture Pak Decision

In 1993, Malcolm and Melanie Rands founded ecostore (hereinafter alternatively the company) in New Zealand's Northland coast in response to a growing need for consumer- and environment-friendly personal and household cleaning products. After a decade of consistent growth and sustained financial success, the companys chief executive officer considered whether to pursue greener alternatives to ecostores already environmentally responsible plastic packaging using recycled plastics by switching to innovative plastics made from sustainable sugar cane crops. The purpose of this case study analysis is to provide an analysis of the household and personal cleaning industry in Oceania, as well as an evaluation of the companys competitive position in this industry. In addition, the collaboration strategy between ecostore and bioplastic manufacturers to introduce green packing called the carbon capture pak is introduced together with supporting rationale concerning why the specific type of a collaboration with a specific bioplastic manufacturer is important for ecostores eco-innovation strategy. Finally, a critical evaluation of ecostores innovation strategy from interdisciplinary perspectives as well as the respective challenges and opportunities the company faces from incorporating an interdisciplinary approach is followed by strategic advice to the co-founder his team to achieve sustainable innovation success in the future. A summary of the case study findings and the important points that emerged from the research are presented in the conclusion.

Analysis of the environment of the household and personal cleaning industry in Oceania and ecostores competitive position in that industry

Define where the Oceania region is.

The region of Oceania is comprised of thousands of islands and island chains that are peppered across the South and Central Pacific Ocean. The name Oceania is attributable to the fact that the vast majority of this region of the world lies under the Pacific Ocean (Oceania physical geography, 2022). As shown in Figure 1 below, the main landmass in Oceania is Australia, the worlds smallest continent as well as Zealandia which consists of New Zealand and the eastern part of New Guinea which is home to the country of Papua New Guinea (Oceania physical geography).

Figure 1

Political map of Oceania

Source: Nations Online (2022) at https://www.nationsonline.org/oneworld/map/oceania_ map.htm

In addition, the Oceania region includes three main esia island regions: Micronesia, Melanesia and Polynesia, the latter of which includes the U.S. state of Hawaii (Oceania physical geography, 2022). Nearly 44 million people live on these Oceania islands and island chains, making this region of the world a significant market for products and services of all types, including most especially household and cleaning products which are discussed further below.

Define the household and personal cleaning industry

The household cleaning industry is comprised of products that are specifically designed for household use, including detergents, soaps, laundry additives and laundry bleaches that are intended for use in either a commercial or domestic setting. Although not exhaustive, the list of household products in this industry also includes products that are used for commercial laundries, dish washing, and textile cleaning (Household cleaning products definition, 2022). The personal cleaning product segment of this industry includes personal care items such as hair shampoo, hand soaps and toothpaste (Household cleaning products definition, 2022). Not surprisingly, this global industry has experienced continued growth in recent years as discussed below.

Analysis of the industry/segment

The global household and personal cleaning industry was valued at more than $221 billion in 2020, and it is projected to increase to more than $320 billion by 2028. The global household and personal cleaning industry is being driven by increasing demand for natural products, with year-to-year increases being identified in the Oceania region (Household cleaning products market, 2022).

Identification of a collaboration strategy between ecostore and bioplastic manufacturers to introduce the carbon capture pak and supporting rationale concerning why the specific type of a collaboration with a specific bioplastic manufacturer is important for ecostores eco-innovation strategy

Determine what collaborative strategy ecostore have undertaken

The company has a long history of collaborating with industry experts and corporations that could provide it with the timely guidance it needed to develop incremental improvements in its products to make them as effective or even more so than their commercial counterparts based on its health first corporate philosophy. With respect to its carbon capture pak initiative, the company evaluated the potential for collaboration with major manufacturers of bioplastics, including Braskem, Fkur and Toyota Tsusho. Each of these bioplastics manufacturers had its respective advantages and disadvantages for the purposes of the companys goals of stepping away from the reliance on petroleum-based packaging associated with greenhouse gas emissions (Balzarova & Castka, 2018, p. 5).

This type of collaborative strategy has characterized the companys efforts since its inception. In fact, the company emphasizes that it has already made the switch to sugar cane-based polyethylene plastic for its packaging materials based on its discussions with and analyses of the major bioplastic manufacturers in the world today. In this regard, the company emphasizes that, Since 1993 weve been making safer plant and mineral-based products you can trust. Our plastic bottles are made from renewable sugarcane. Its 100% recyclable at kerbside and takes carbon...…In addition, the case study also made it clear that the top leadership team at ecostore fully embraces the companys commitment to zero-carbon emissions and environmental responsibility.

Identify the challenges and opportunities this interdisciplinary approach presents to ecostore

Because it is impossible to gauge the carbon impact of any new innovation with any degree of absolute precision, one of the mainchallenges that ecostore faces today and in the future is performing the cost-benefit analyses needed to estimate this environmental impact based on the best available scientific evidence. Even the most accurate models, however, are likely flawed somewhat due to the multiple variables that are involved, but these same challenges can translate into opportunities if the company continues to conduct its due diligence and rely on the best available evidence before making further substantive changes in its business model.

Advise the Ecostore management on how their innovation success can be sustainable

The monocropping process that is used to grow sugar cane exclusively is not sustainable over time due to the depletion of soil nutrients and the potential for blight (Mhlanga et al., 2021). Although the case study is essentially silent concerning the exact procedures that the company elected to pursue to achieve the switch to sugar cane-based plastics, the references to the use of peat land suggest that this was the solution pursued by ecostore. Therefore, in order to be sustainable, it is vitally important for sugar cane crops to be rotated with other types of plants, including possibly some plants that are already used in the companys eco-friendly product formulations.

While it may run contrary to the ecostores corporate philosophy, the companys leadership should also consider adding some color (probably green) to its commercial packaging. As noted above, ecostore has long suffered under the impression that it was a small-time operation that manufactures its products in a bathtub in the backyard, and its black-and-white packaging does little to dispel this misperception. The simple addition of green to its current packaging, even if it is only applied to the companys name and logo, would help attract consumer attention and would serve to overcome this marketing constraints.

Conclusion

The research showed that at first blush, the transition from petroleum-based plastics to sugar cane-based plastics was a no-brainer for a company promoting itself as a leader in environmental responsibility. The research also showed, though, that there were multiple factors involved, some of which were identified in the case study, that must be taken into account when making this type of decision. In sum, cultivating strategic alliances with existing and new partners that…