Ecological Industrial Waste Inc.

Business Strategy: Assignment Report

Prum Cheanarith

Sieng Menghong

Group: IJ

Date of Submission:

May 22, 2022

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Table of Contents

1. Introduction 1

2. Business Model Canvas 2

3. Vision, Mission & Core Value (Chapter 2) 4

4. Organizational Structure 5

5. Strategic Group Mapping 7

6. Weighted Competitive Strength Assessment 9

7. Strategies to Launch the Business 11

8. Conclusion 14

Appendix 15
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1. Introduction

It is recognized that the level of wastage is rising every single year across the world.
No matter how a country is fully developed or human civilization flourishing is, there are still
some small parts of wastage created by human and some come from natures. We do
exactly know that the environment is very important to our human lives, which can provide
us comfortability, water quality, air quality and other relevant advantages in our everyday
life. Therefore, as humans, we should make an effort to conserve our environment and our
natural resources as much as possible in order to protect the environment from any human
destructive activities. If the environment is destroyed in any situation, there will be problems
for many people around the world such as human health issues, an increase of earth’s
temperatures, disappearance of iceberg, flooding, and somehow can create a new virus
pandemic to the world.

Currently, Cambodia is a developing country which needs a lot of development and

a ton of industries including agricultural industry, garment industry and manufacturing
industry which are located around the city and some rurals areas in Cambodia. So, these
are factors which are so harmful to local people that we should not ignore and have to back
up all plans to save the environment.

In this topic, we will introduce you to our business which is named “Ecological
Industrial Waste Inc.” which concentrates on recycling all wastages in Phnom Penh city and
other provinces located in Cambodia. Our business runs to develop a new strategy to keep
our environment clean and green that can guarantee health safety to our people.
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2. Business Model Canvas

Key partners Key activities Value propositions Customer relationships Customer segments

- Plastic produce - Marketing - Cleaning Environment - Local people learn about- Local Businesses such as:
manufacturers - Research & - Good quality service eco-friendly environment - Restaurants
- Aluminum Produce Development - Superior supplier - Build trust and useful
- Hotels
manufacturer -Reused-products communication
- Maintaining Service manufacturing - Increase local people’s - School
Operator - Waste Data Analysis income by selling their - Hospital
- Nation/International - Regularly maintaining plastic wastes - Factory
Investors operating machines - Social Media
- Industry
- Business Consultant - Routine Waste
Service Collection
- Government
- Waste Collection trucks Key resources Channels
from oversea
- Human resources - Office
manufacturers
- Machinery (equipment - Social Media (to advertise
- Plastic Converting
in manufacturing, our business operation)
Machine’s suppliers
automatic purchasing
machines, garbage
trucks)
- Manufacture sites
- Recycle materials
- Organic fertilizer
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Cost structure Revenue streams

- Truck Maintenance costs - Retail services (Monthly receivable for each house, selling fertilizer)
- Machine Maintenance costs - Wholesaler (Directly transactional trade to the market for recycling
- Employees salary product)
- Business Strategy cost
- R&D Costs
- Taxes
- Advertisement costs
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3. Vision, Mission & Core Value

Vision: Ecological Industrial Waste Inc. is the evolution of the green planet by
restructuring the concept of keeping trash with appropriate technique, facilitating people by
earning each disposal of wastage.
Mission: The presence of Ecological Industrial Waste Inc. is established to fulfill the
people’s needs in living- the clothes you wore will be repeated for another day, but the
wastage won’t have a chance. Beside of this, those wastages ain’t even given attention in a
proper packaging. On other hand, some losses have a scrap value though there is difficulty
to be traded on the market. We are here to complete those cracked holes for everyone.
Core values:
Ecological Industrial Waste Inc. is the leading organization in Phnom Penh city,
which provides the best service in collecting garbage with high technology and standard. It
reflects the core value:
➢ Environment focus: We deliver garbage to the final user in the business cycle. We
are concerned about the environment and promote the use of recyclable products
and renewable energy.
➢ Customer satisfaction: We are committed to meeting the needs of our customers
and keeping the promises we have made to them.
➢ Over-qualified: We are what more than you expected because we owed the victory
to society.
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4. Organizational Structure
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5. Strategic Group Mapping

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Based on the 57 responses of the surveyee, it is pointed out that CINTRI (China) is a well-known brand image since this company has
been serving the role of collecting garbage for many years and the current brand name changed a little bit due to the ownership transferring to
a Chinese company. Under the financial pressure, the founder of CINTRI company decided to offer of sale to the public since having problems
with poor service in collecting trash in Sihanouk Ville and also in Phnom Penh City. Even Though, the new CINTRI is working under good policy
and a new corporate strategy which is taking responsibility for 4 districts such as Chamkar Mon, Boeng Keng Kang, Meanchey, and Chbar
Ampov. The second existing company is GAEA (Cambodia) Co., LTD/ 800 Super, which penetrated the market during the period where
CINTRI was being criticized overwhelmingly. In this opportunity, GAEA is the competitor to CINTRI which made monopolistic market change to
oligopolistic market. Nowadays, GAEA is controlling the marketability of 5 districts such as Tuol Kork, Russey Keo, Sen Sok, Chroy Changva
and Prek Pnov. Last but not least, it is the latest company entered the market in 2021; Mizuda Sanitation Cambodia Co., Ltd. will serve five
districts as well, covering Daun Penh, Prampi Makara, Dangkor, Por Senchey, and Kambol.

The big three holds the market share by dividing into different divisional regions. Interestingly, these companies still do not fulfill the
customers’ needs completely as well as inefficiently bringing the most value to society. At the same time, people perhap have no choice
switching to another company- so stay with the same position and less satisfaction. This was extracted from the analytical survey from
people living in various areas, showing that those companies have the higher service cost compared to quality and techno-equipment in
practicing the work. This signal sent the green red to Ecological Industrial Waste Inc. establish in order that the best-low cost provider
strategy will be used to gain the competitive advantage, better controlling rubbish, and bringing advanced technology to Cambodia. Look at the
table shown at the top, the green circle represents our new entry company which is capable of providing lower cost, high quality, and the best
technology. Meanwhile, the three circles are the existing companies that are considered at moderate level in both price and technology.
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6. Weighted Competitive Strength Assessment

(Identify the main competitor and briefly explain the strategies to outperform the competitors)
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Empirically, there are many key success factors to measure the level of weighted overall competitive strength scores in order to know
whether a company’s presence is a concern for making decisions and which is not the one. Meaning to say that each indicator will represent
the competitive strength of the competitor can affect Ecological Industrial Waste Inc.’s corporate strategy if the competitor is measured as a
higher score. Graphically, all of the three competitors have the identical results which are approximately 5 to 6; this scale figure is moderate or
average for the current market. Therefore, the forming of Ecological Industrial Waste Inc. is the new opportunity for the investor or founder to
sustain the business and gain the net profit in return. About the competitive strength assessment, Ecological Industrial Waste Inc. is higher
than the existing competitors in terms of mathematical figures around 7 points in total. This measurement is really incredible that such a new
entry can beat up the market. To obtain this result, Ecological Industrial Waste Inc. has a few special features which are different from those
existing companies such as a new technological integrated system, provide additional range of services, accelerate the working efficiency,
adopt a proactive dealing issue team, and be the best-cost provider. All of these uniquenesses, giving high hope to investors for investment
and restructuring Phnom Penh City become a green planet, smart clean city, and one of the destinations in the world.
Again, the comparison between the three existing companies and our new entry can illustrate that Ecological Industrial Waste Inc. has
the capacity to perform this role better than the existing companies. First, the new entry can hold the marketability more than anyone else
because the availability of several equipment fit in every position of location as well as the advance technology wearing on the truck and other
items which facilitates the workflow more productively. Those regions include Daun Penh, 7 Markara, Tuol Kork, Sen Sok, Russey Keo, Chroy
Changvar, Boeng Keng Kang, and Charmka Mon. About brand image and reputation, this is the weakness of new entries like Ecological
Industrial Waste Inc. but that is not the concern because it can build later on through the performance of services. Moreover, the competitive
price is set not to focus on profitability, the society comes first.
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7. Strategies to Launch the Business

(At first, briefly explain both the external and internal environment followed by a brief description of your value
chain (performed internally and outsourced), marketing strategy (social media, news, or physical events),
Partnership / Acquisition, any of the five generic strategies or any other strategies going to be implemented. You
may also mention your both financial and strategic objectives for the first two years.)

In order to run the business operations successfully, Ecological Industrial Waste

Inc., has studied both the external and internal environment within the territory of
Cambodia. Our team has done a lot of research and developed new business strategies to
make sure that Ecological Industrial Waste Inc., is sustainable in a competitive
environment. The basic point of the external environment is PESTEL analysis. This analysis
includes Political factors, Economic Conditions, Sociocultural forces, Technological factors,
Environmental factors and Legal and Regulatory conditions. In fact, two factors, political
factors and economic factors are approximately sustainable in Cambodia so this will
improve the business stability in the competitive market. Furthermore, Sociocultural factors
are a part of our analysis by understanding the situations of each area located in Phnom
Penh and how much cost should be set as a price to each area. Environmental factors,
Ecological Industrial Waste Inc., has chosen an area outside of Phnom Penh city, in order to
store the waste that the company has collected in the city and has an obligation to keep it
clean and green for people and Technological factors is that the company chooses the
latest garbage truck along with adequate garbage tank to make sure that it will be collected
garbage quickly and save the environment. Last but not least, Legal and Regulatory
conditions, Ecological has been cooperating with the Phnom Penh municipality and made
an agreement with them according to the waste management regulations. Particularly, the
internal factors of Ecological Industrial Waste Inc., including two things such as Plans and
Policies, and Value Propositions. Our company has set up long-term plans along with a
“Going Concern” basis to make sure the business is profitable for the future. Moreover, the
internal infrastructure is centralized, which means that there will be a specific CEO and
managers within the company, and this will improve the operations facilities as well.

Ecological Industrial Waste Inc. is not just giving a service to collect the trash on
time basis, but we also cooperate with customers for acquisition of recycling waste such as
aluminum can, glass bottles, papers, metal materials, and other relevant items. Customers
who wish to put the sale of items above can make a process through the automatic trading
waste machine (ATWM) which can be found on the high street around Phnom Penh
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municipality. About the collecting service, we are the best-cost provider with good quality
service by adopting the decentralized management department (geographical structural
organization); each operating unit has a better understanding of local position and can
quickly respond to the immediate matters. Out-of-doors, the last feature of our industry is
served in the field of agriculture by producing fertilizer from biodegradable waste and
helping farmers increase their productivity.

Since there are more developments in technology, our company creates a Facebook
page on social media and advertises our business operations to everyone to let them know
about our services. In order to boost our page, the company offers a giveaway gift to those
people who share our facebook page as a public post. This is a successful advertising
campaign for the business strategy and thus, we also provide gifts to attract more
customers. Particularly, our company sets up a different strategy from our rivals . We try to
create an activity in our society by encouraging people to join with us to celebrate a clean
working environment day which will provide benefits to the community and health safety for
people. Additionally, Ecological Industrial Waste Inc., offers the best price and guarantees
good quality services to our customers by having a specific schedule to collect garbage on
time and not allow detection of the smell of garbage in the city. Ecological Industrial Waste
Inc., also gives specialized training to our staff to make sure they understand the work
conditions and safe work environments offered to every staff member.

Partnership

Ecological Industrial Waste Inc, has cooperated with the Cambodian government
due to a stability of business operation and there are 51% shares from the company and
49% shares from the government.

Five Generic Strategies

Best Cost Strategy is a key point of Five Generic Strategy that is chosen by
Ecological Industrial Waste Inc., to implement in the business operation. As mentioned
above, Ecological Industrial Waste Inc., offers the best prices of services and gives our
customers more value for their money by underpricing rivals whose services do not fulfill
our customer needs. Our company understands the importance of prices which will affect
people's perspectives.
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Strategic Objectives

As an initial stage, Ecological Industrial Waste Inc., invested a lot of money to start
up a business operation in Cambodia. The money was spent on purchasing garbage trucks,
building head office, garbage cans, uniforms for employees and other relevant stuff for the
business operation. For the next 2 years, Ecological Industrial Waste Inc., has three
objectives to achieve such as planning to increase amd expand customers range including
family houses, hotels, restaurants, supermarkets and other businesses, increase market
position in Cambodian market by expanding to other provinces such as SihanoukVille and
Siem Reap, and reduce waste level as much as possible in order to keep the environment
clean. Besides achieving this, Ecological Industrial Waste Inc., also plans to increase its
revenues 20% every semester to make sure that there is a sustainability for Ecological
Industrial Waste Inc., business.

Financial Objectives

Materials Needed Cost (USD $) Supplier’s Name Location

Garbage Trucks per 15,999 Zhangjiagang Kooen Jiangsu, China

truck Machinery Co,Ltd

Automated Trading 63,761 Jinan Heavy Truck Shandong, China

Waste Machine Imported & Exported
Co, Ltd

Factory Site (Rent 3,200 From Rent Agent Khan Sen Sok,
per month) Phnom Penh

To cover those 8 areas, Ecological Industrial Waste Inc. makes purchases on 8

garbage trucks, 1 automated trading waste machine in order to recycle plastic and
aluminum waste, and rent expenses for the factory site to place the garbage truck and the
machine. According to a quote price, the company decided to purchase garbage trucks
and a machine from China instead of Germany because there is a low shipping cost from
China to Cambodia and thus, the quality is not far different from both countries.

YEAR 1 YEAR 2
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S1 S2 S1 S2

Revenues (USD $) 12,500 15,000 18,000 21,600

According to the business strategy of Ecological Industrial Waste Inc. plans to

increase their revenues by 20% every semester in order to keep sustainability and business
operation effectives in a long-term run.
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8. Conclusion

To shed light on this finale, Ecological Industrial Waste Inc., is a new start up
business which is planning to compete in a competitive market in Phnom Penh city of
Cambodia. Even though there are already existing industries similar to Ecological Industrial
Waste Inc,. The company still operates their business effectively and efficiently due to an
understanding of local people, the surrounding environment and the perspectives of
cultures. Thus, Ecological Industrial Waste Inc., offers the best prices and services to the
customers and will let them be satisfied with their money and update new modern garbage
trucks, which will impress our employees and motivate them to work harder and especially,
save time to collect all garbage. Last but not least, Ecological Industrial Waste Inc., plans to
increase their revenues by 20% in every quarter which means the business seems to be
profitable and sustainable in the future.
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Appendix
(Pieces of evidence of your meeting with key partners, images of products, and all survey questions and results)

CMAP (16 Sep 2013), Environmental Benefits retrieved from:

https://www.cmap.illinois.gov/about/2040/supporting-materials/process-archive/
strategy-papers/parks-and-open-lands/environmental-benefits
C. Vanyuth (1 July.2021); Khmer Times News: New firms commence garbage collection in
Phnom Penh. Retrieved from:
https://www.khmertimeskh.com/50884779/new-firms-commence-garbage-collection-
in-phnom-penh/
Survey: BUSINESS STRATEGY- STUDIES RESEARCH retrieved from:
https://drive.google.com/drive/folders/1k1B5AMgbYSHC8uDnUsjp2-aMof0EDQ3G
Sample of Automatic Trading Waste Machine:
https://www.youtube.com/watch?v=coBvrjDg7VA
Sample of standardized garbage bin and new technique for packaging waste
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FULONGMA NEWS: Garbage truck operation process and working principle retrieved from:
https://www.fulongmagroup.com/news/garbage-truck-operation-process-and-
working-principle/
Rand Rafea .A, Aziz Ibrahim .A (7 Mar 2019); Recycling of Food Waste to Produce the
Plant Fertilizer. Retrieved from:
https://drive.google.com/file/d/1ArQruzn14oPdHpEGXJfmcLer_JTg3tgR/view?
usp=sharing
The price of PPE, ALIBABA retrieved from
https://www.alibaba.com/product-detail/Waste-PE-PP-agriculture-film-
bags_62412432724.html?spm=a2700.7724857.topad_creative.3.31ce3ed40xNxBk
The price of truck, ALIBABA retrieved from https://www.alibaba.com/product-detail/Garbage-
Truck-Sinotruk-Howo-6X4-Garbage_1600238051312.html?
spm=a2700.7724857.normal_offer.d_title.736714ad4tepku&s=p
Rental site for factor, Rent KH: retrieved from https://rentkh.com/detail/warehouse-at-khan-
sen-sok/100526