Terracycle: Outsmarting Waste Essays

1048 Words Mar 25th, 2014 5 Pages
TerraCycle: Outsmarting waste

1. Upon what basis did Szaky make decisions throughout the development of the venture?
Tom Szaky is an entrepreneur, known for starting TerraCycle, a company that makes consumer products out of waste. Although the environment and the venture itself changed a lot throughout the development, Szaky always remained true to himself. He believed that a waste management business could make a profit and promote environmental protection at the same time. However, gut instincts and being in the right place at the right time was also an important issue for the former success - commencing with the idea for the startup business when he visited his friends and discovered the fertilizer which they had developed. Shortage
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Therefore they refined their business model and developed the strategy of “Sponsored Waste”. The high amount of waste generated in America is the basis for earning money with recyclable products. TerraCycles’ business model is now eco-capitalism like using well-chosen waste to create new non-polluting and marketable products such as bags, pencil cases or lunch boxes. Meanwhile TerraCylcle is operating together with Kraft Food, the biggest food company in America. The drastic change from a manufacturer model to a licensing model helped TerraCycle to become profitable and offer a broad range of products and services. From a present-day perspective the fertilizer is only a tiny fraction of turnover.
Associated with the business model are also a lot of challenges such as the management and storage of the required garbage. Additionally it was necessary to implement a widespread program of waste collection. TerraCycle stands for a high level of growth since its foundation which has positive but also negative aspects. In my opinion the startup follows the right path with their comprehensive waste management and could play a significant role in the future recycling industry. For the realizing it would be heplful to reduce the wide range of products and services and focus on the most profitable and promising ones.

4. Where are startups most likely to offer value to large multinationals? If you worked for Kraft,

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