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Green Rubber: The Revolution of the Rubber Recycling Business  
Product Ref: 09/436C Company: Green Rubber Global

Product Type: Case Industry: Automobiles & Components

Related Product(s): Teaching Note
Dedicated to offering high-tech solutions for environmental and social problems, a privately-owned Malaysian conglomerate, Petra Group, aimed to innovate the recycling of rubber waste. Since the 1990s, the group had tried to transform rubber waste using its patented DeLink technology to produce reusable rubber, which it branded as Green Rubber. Despite failing to make a sound industrial impact with the technology in the mid-1990s, the company wanted to reintroduce the eco-friendly solution in the new millennium. Through its subsidiary, Green Rubber Global (ˇ§GRGˇ¨), the group progressively explored partnerships with those wanted to be part of increasing demand for environmentally friendly products. In 2007, GRG opened the first US-based rubber recycling plant in New Mexico, with the support of the state government. Vinod Sekhar, the founder and chief executive of GRG and Petra Group, envisages Green Rubber becoming a global trademark for most rubber-based products, the way ˇ§Intel Insideˇ¨ has for computers.

However, there was industrial scepticism not only about the cost-efficiency of DeLink technology, but also the quality of Green Rubber, partly due to GRGˇ¦s failure in the market a decade before. Would GRGˇ¦s past failure be a stumbling block for its future business development? Would increased global expectations for corporate environmental and social responsibility be the stepping stone to a lucrative success? Because ˇ§greenˇ¨ claims had been over-exploited by marketers in recent years, there was also cynicism about commercial corporations selling green products. How could GRG successfully run a business driven by commercial principles that also aimed to sustain environmental and social progress? And how will GRG benefit from its connection with the parent company?
Functional Area : Marketing
Social Enterprises & Ethics
Strategy & General Management

Issues: This case addresses several issues, including environmental discourses in organisational studies, the challenges in green marketing, sustainability in business development, and the evaluation of parenting advantages
Length: 16 pages Country: Malaysia

Pub. Year: 2009 Level of Difficulty: 3
This product type is available in the following language(s):      English
Related Information: N/A
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