A Recycling Company Distanced Competition and Increased Revenue
Introduction:
This case study is about a recycling company that was struggling to keep up with the competition and increase their revenue. Anima, a consultancy in business model innovation, was approached to help the company develop a new revenue engine that catered to a different operating model and targeted other businesses. Anima’s approach to the project was guided by various business model innovation frameworks. This case study details the project’s background, challenges, approach, and outcome.
Background:
The recycling company had been in business for over 2 years and was struggling to financially float in the recycling industry. However, in recent years, the competition had intensified. The company’s traditional business model involved collecting recyclable materials from households and then processing and reselling them to other companies. This model had become saturated and had limited opportunities for growth and revenue diversification.
Challenges:
The main challenge that Anima faced was developing a new revenue engine that would allow the company to cater to a different operating model and target other businesses. The consultancy needed to create a new business model that would enable the company to stay competitive and increase its revenue. This required a thorough analysis of the recycling industry and the company’s capabilities and resources.
Approach:
Anima’s approach to the project was guided by various business model innovation frameworks. The consultancy first conducted a SWOT analysis of the company to identify its strengths, weaknesses, opportunities, and threats. Next, Anima analyzed the company’s value proposition and how it could be improved to attract other businesses. Anima also identified the company’s key resources and capabilities that could be leveraged to create a new revenue engine. Anima then used the Blue Ocean Strategy framework to identify untapped market opportunities. This involved analyzing the recycling industry and identifying areas where the company could differentiate itself and create a new demand for its services. Anima also used the Lean Canvas framework to develop a new business model that catered to the identified market opportunities.
Outcome:
After three months of intensive research and analysis, Anima developed a new revenue engine for the recycling company. The new business model focused on offering recycling services directly to businesses, rather than households. This involved creating tailored recycling solutions for each business, depending on their unique needs and waste streams. The new model also included a subscription-based revenue model, which offered a recurring revenue stream and reduced the company’s dependency on one-time sales. The new revenue engine proved successful, and the company was able to attract new clients and increase its revenue. Anima’s approach to the project, guided by various business model innovation frameworks, allowed the consultancy to create a new revenue engine that catered to a different operating model and targeted other businesses. This enabled the company to stay competitive and increase its revenue, resulting in a win-win situation for both the consultancy and the recycling company. Interested in transforming your business model and unlocking new revenue streams? Contact Anima today to discover how we can assist you in driving innovation and growth.