Staying afloat in a 'Green Ocean'
The Thaipat Institute has suggested that private companies adopt a "Green Ocean" strategy to attract environmentally concerned customers.
In the highly competitive business world, companies are fighting hard for their survival.
The Blue Ocean strategy, which has become well-known in the past five years, is insufficient for increasing revenue. Instead, it is used to create new demand or new markets and avoid competing in the intensified Red Ocean market.
"It has been proved that the Blue Ocean strategy is not the answer to the current business environment. A Blue Ocean market is not sustainable, as it will turn into a Red Ocean once too many newcomers join in," said Pipat Yodprudtikan, a director at the institute.
Finally, products offered in a Blue Ocean market will eventually face cost pressures and unbeatable challenges.
A poll conducted last year showed the "green product" concept had become a third factor in customers' buying decisions, after quality and price. "Customer pressure will encourage the business sector to adjust," said Mr Pipat.
Thus, the Green Ocean strategy can balance business interests and environmental responsibility. It will help companies achieve sustainable growth in the long term.
Mr Pipat said the Green Ocean strategy was not only a theory, but also systematic knowledge and a business concept that came from many organisations that have successfully provided green products and services.
The strategy is also a refinement of the "corporate social responsibility" concept in Thailand as well.
"The Green Ocean strategy will help management look at business from three dimensions - environmental, human and organisational," he said.
The strategy comprises two elements - green governance in conducting systems; and green habits that will foster a sense of responsibility among an organisation's human resources.
Green governance comprises three factors - resource efficiency, process accountability and product effectiveness.
Green habits number seven - rethink, reduce, reuse, recycle, recondition, refuse and return.
Mr Pipat said the Green Ocean strategy will be a tool for non-governmental organisations and regulators to do a "green watch" as well.
[Original Link]
