Innovation in Recycling: A Case Study of TerraCycle's Zero Waste Box

Desklib provides past papers and solved assignments. This report analyzes TerraCycle's innovative recycling strategies.

MANAGING INNOVATION
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Table of Contents
Introduction......................................................................................................................................3
1) To describe, in detail and in your own words, one or more innovation theories of your
choice...............................................................................................................................................4
2) Theories in explaining the historical development of one or more products and/or services,
and the possible future development pathways of your products or services..................................7
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12
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Introduction
Innovation is the process that is related towards introducing something completely new and
unique in the market. The sole aim of innovation is to enhance the overall profit generations of
the organisation and to create the image of the organisation in the international market. The
advantages that are obtained from innovation are indeed mani-folded and the project below will
concentrate on determining the ideas as well as the benefits that are related to innovation in an
extensive way.
For understanding the impacts of all of these factors, the case study of Terracycle has been
considered. Terracycle is one of the leading UK based recycling plants operating in UK. The
organisation is an example of one of the leading waste management organisations operating in
the country. The organisation is currently operating in more than 20 countries all over the world
making it one of the leading organisations operating in its sector. The company deals in
recycling and innovation is something that is quite common in the sector. The project will
investigate the range of innovation theories that will be useful in this case scenario.
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1) To describe, in detail and in your own words, one or more innovation theories of your
choice
In the words of Fores and Camison (2016), innovation is never something that has suddenly
popped up out of nowhere. Innovation is something that has always been in existence since the
advent of humankind. People have always been innovating things in some way or the other and
these have always contributed to the welfare of humankind. Innovation and management is
something that has shaped the modern world and has accelerated the entire journey of the human
from the ancient age to the modern age.
In terms of business, innovation is the process that is related with the overall process of
conducting a proper research, conceptualizing the idea and hence manufacturing or marketing
the product in the market. In the words of Souto (2015), innovation is the combination of an
effective market research, along with producing and markets the products in the market.
However, in the recent times, there are a number of theories that have been put forward for
identifying innovation and understanding the impacts of these on the overall business of
Terracycle. The radical theories and the breakthrough theories of innovation form two of the
most significant theories of innovation that are in practice. The below section will provide a
discussion of both of these theories in a detailed manner.
Breakthrough Innovation Theories
As put forward by Perin et al. (2016), the breakthrough theories of innovation play a vital role in
opening up new markets. Often it helps in determining new markets or investigating into the
existing ones and this turns out to be the most significant factors of innovation (according to this
theory). The application of the breakthrough theories also helps the organisations in enhancing
the overall profit margins as well as the market share of the organisation. This type of
innovation helps in inventing new products as the only source of enhancing the market share
(Tzabbar and Margolis 2017).
If the related statistics are considered then it can be identified, that the breakthrough theories
(otherwise known as the disruptive theories) is considered in only 20% of the overall innovations
that occurs. However, people often tend to confuse among the types of innovation and relate
them greatly with the disruptive innovation. Distinguishing among the typologies Nilsson et al.
(2017), stated that not every innovations that are occurring in the surroundings could be
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categorised as disruptive. The disruptive type of innovations has something extra linked with it
that makes them disruptive.
The disruptive type of innovations in most of the cases is those type of innovations that are
mostly introduced by the new start ups or the entrepreneurs. The sole risk that is associated with
the adoptions of these type of innovations is that it actually takes time to build and time to earn
profits and hence role out. In the words of Van et al.(2016), the advent and the introduction of a
completely new technology that have never been in existence nor in any form, often turn out as
the key to success of these type of innovations.
There are also a number of advantages, which are associated with the breakthrough innovation.
The excessive number of risks (particularly the chances of risks) often turns out as the most
significant of the disadvantages that are related to it. As discussed by Kaplan and Vakili (2015),
the adoption of this particular type of innovation can often turn out to be a risky one. On one
hand if successful t can turn one to a millionaire and if not it can turn one into a popper as well.
Hence, it is highly recommendable for Terracycle to consider the advantages and particularly
the disadvantages before opting for these types of innovations. In the words of Silva et al.
(2017), the product Zero Waste Box thus introduced by Terracycle can be considered as an
example of this particular type of innovation. The zero waste boxes is indeed one of the most
significant of the inventions that have been put forward by Terracycle and this provides a
solution towards the municipal waste products that cannot be recycled using the contemporary
methods. The product has particularly helped Terracycle in gaining a good name in the market
(Tzabbar and Margolis 2017).
Radical innovation Theories
Another of the significant theories of innovation that deserves a special mention are the Radical
Theories of Innovation. The theory although somewhat similar with the breakthrough theories,
but this theory involves introducing a new product in the market along with an associated
business model. As put forward by Plattner et al. (2016), the radical theories of innovation form
the most significant and the most discussed theories of innovation. Inspite of being one of the
most discussed theories of innovation, it has been identified that the applications of this theory is
much more limited as compared to the other theories of innovation. The investment costs as
well as the risks that are associated with the process are much more as compared to the other
means of innovation. If applied and executed in a proper manner, these can turn out to be
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transformational and if not it can turn out to be equally disastrous. In the words of Tzabbar and
Margolis (2017), the radical theories have often introduced significant changes in the market
both in terms of finance as well s market presence of the organisation. It has also been noted that
the products and hence the outcomes of this types of innovation often enhances the overall
market competition extensively. In most of the cases, these type of products also give rise to a
new market (competitive or not).
The radical theories of innovation lie in the furthest end of the innovation continuum. In the
words of Plattner et al. (2016), the radical innovation is considered if and only if the entry of a
new product brings about radical changes in the market. (ten percent) or even less of the
innovations that happen in the surroundings are considered as radical and this clearly points out
towards the immense risks that are associated with the process. There is a tendency among the
individuals to avoid these type of inventions as this demands immense hard work (combinations
of hard work, market research, market penetration, financing as well as other things). It has also
been identified that the rate of failure (and that too the miserable ones) are quite high in this
sector. In the words of Tzabbar and Margolis (2017), the reasons of failure are indeed mani-
folded while the wrong selection of products along with the ineffective market strategies forms
the most of the failure reasons in this case. However, there are a number of debates that have
also been put forward in this regard. If the words of Tzabbar and Margolis (2017), are
considered then the chances of profit generations are quite high in this case. If successful these
type of innovations can provide much profits as compared to the breakthrough theories of
innovation. There have been instances when the radical theories of innovation have proved to
be immensely successful and have even changed the face of the market. Like the breakthrough
innovation, selecting the right product and hence the right technology often turns out to be the
success (or failure) determining factor of the process. Hence, before adopting this particular
theory and the concepts of innovation, Terracycle need to conduct a proper research and market
survey to determine the gap in the products as is present in the market. After this, Terracycle
need to identify and launch the exact combinations of products, services along with technologies
that can prove to be useful in filling up this gap in the market. It is expected that following these
steps will prove to be extremely useful for Terracycle in securing the desired horizons of
success.
1.
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2) Theories in explaining the historical development of one or more products and/or
services, and the possible future development pathways of your products or services
Overview of the company and their Innovation history
TerraCycle is a recycling company that is headquartered in Trenton, New Jersey. This company
is a global leader in the market, as it has managed to recycle hard waste (TerraCycle, 2019). The
company is known for its innovative approach to recycle hard waste. It is partnered funded by
prominent manufacturers and brands. Therefore, the company invests in programmes that are
voluntary in nature ad makes a collection of non-recyclable post consumer and pre consumer
waste. The company also initiates with donors to make the use of raw materials for
manufacturing newer products. It is a private company and was founded by Tom Szaky and Jon
Beyer.
However, with the initiation of these innovative approaches the company has been able to
survive and become one of the prominent leaders in the market (Mylan et al., 2015). The
company has made an entry in to the global market by launching significant products such as the
Zero Waste Box. This waste box is useful for the packaging of beauty products and be further
recycled. This waste box is helpful as it caters to the recycling of every type of waste in.
Therefore, with the use of this waste box a number of things are manufactured such as
backpacks, pet products, gallon sharp box and so on. Therefore, the report will be initiated using
innovative theories. The innovative theories that have been selected for the course of the work
are Breakthrough Innovation theory and Radical Innovation theory (Silva, 2017). The report
will give a critical analysis and portray the historical developments of companies that have
initiated and commercialized their innovative business approach. Hence, the report will provide a
pathway on the selection of products that are beneficial for the business. It will also indicate a
clear pathway for the products that can be boosted for further developments in the company.
Innovation is an approach that is taken by a number of companies to contribute to the
development of the products. Hence, with the use of innovation theories one is able to get an
access into the growth and development of the business. The companies are able to gain an
access into the growth of the business and the strategic operations of a company.
The Historical development of recyclable products and Innovation
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The history of recycling wastes can be traced back to the modern movement of the 1970’s. There
have been companies that have initiated in his noble cause keeping in consideration the
environmental issues prevailing. However, with the rise of various strategic methods, there were
companies held accountable for the management of waste. The company DEFRA ( Department
for Environment, Food and Rural Affairs) incorporated a use of strategy to deal with the hard
waste and plastic in a company. This company’s strategy and plan can be dated back to use of
innovative theory and bringing in Resources and Waste Strategy. With the use of this strategy,
the company was able to recycle wastes such as the electric cars and batteries. The first strategy
as initiated by Gary Anderson who participated in a design competition. Therefore, innovation
took birth with his idea of recycling waste in the counterparts of UK. According to sources,
recycling was started long in the ancient age. Therefore, companies like TerraCycle adopted
initiatives to introduce recyclable boxes for the reduction of the wastes. With the idea of radical
innovation, the companies have been able to improve on their efficiency to produce better
products and services (Baldwin, 2015).
The history of packaging innovation is identical to the Zero Waste Box produced by the
company (Regattieri et al., 2016). However, with an understanding of the amount of waste
produced, the companies are able to simplify the standard of living for the environment. The
concept of Zero Waste Box took birth due to the initiation of the consumer packaging and
dynamics in the business (Wallace, 2015). Therefore, with the companies making a number of
improvements in their products and services, there were factors related for growth of business.
However, companies that initiated and started the innovation business had an influence on the
companies and helped them harness and develop newer products and services. In critical
introspection of the business, there are significant areas in the business that cater to development
of recyclable waste for the manufacture of the waste. Companies such as TerraCycle has been
through this impact and witnessed a increase in their products and programmes while harnessing
services. The recycling of plastics, metals, glass and metal cans had already witnessed an
increase and boost in it innovation approach. This became an important aspect for the business as
the companies made the use of programmes to cater to the development of the services.
Therefore, innovation was an important regulator for growth into the market.
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Therefore, the historical approach of innovation has been exposed to growth in the business. It
has influenced the companies and other businesses to proceed into further developmental stage
and progress. However, with the passage of time companies have contributed to the
understanding of the business to proceed with their future development. Therfore voluntary
companies like TerraCycle have been able to introduce new and novel methods for production
and manufacture. This would set a better example for other companies to corroborate into the
manufacture of products and services.
Innovation theories and future development of the recyclable products
With the introduction of theories and innovation approaches, the companies have been able o
develop on a better scale. This has an influence on the business and initiates a understanding on
the concepts related to growth in business. However, TerraCycle’s recyclable waste box can
influence the companies to work in a more systematic manner for the reduction of wastes
(Lenox, 2018). This will be very important for the companies to comprehend the areas that are
important for recycling these wastes. Therefore, in prospect of future development, the
breakthrough theory is instrumental in bringing in new changes in the company. This sets the
company to make the use of these products and garner to development in the company.
The Company TerraCycle makes the use of these products and services for the growth of the
business. However, with a proper and concise understanding of the services, the company is
able to work in an effective manner. The Zero Waste Box was designed for the future packaging
and recycling products that could be re-used in nature. However, the company can make the use
of composting to cater to the understanding of the business. With the use of newfound strategies
the company ensures the innovation approach for manufacturing important serves.
Therefore, with the adoption of the breakthrough theory there is scope for future development
that will influence the company. It will also lead to the growth of business and tend to the market
entry strategies for the company. However, with the use of these theories, the company will be
able to develop in a better manner. The beauty products will able to be repacked and re-used,
which would add to the growth of the industry. The company has gained success through the
integration of sponsored waste that had an influence on the company. Innovation is an
instrumental element as it garnered growth in the business and helped the company to grow
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periodically. This is significant as it has even developed the business and made it possible for the
company to execute possible gains. Therefore, with the revamp in the products, the company is
able to function in a smooth manner. However, this would affect the growth of the business and
influence its business. However, with these theories the company is able to execute an
understanding of the business and its objectives. However, with the use of these theories, there
is further scope for the development of company.
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Conclusion
In this report, there has been an outline of the innovative contribution made by the recycling
company TerraCycle. Therefore, the aim of the report has been fulfilled as it has emphasized on
the importance of recycling the hard waste. The company sets an example for the country by
funding programmes and events that initiate waste reduction programme. Therefore, there have
been exquisite methods that were adopted by the company to reduce these wastes. However, the
report has also made the use of theories that have contributed to the growth and progress of the
research. However, with the use of the breakthrough and disruptive innovation theories there
has been an increase and boost in the growth of the company. There has also been the use of the
radical breakthrough theory that has contributed to the growth of the report. Hence, the study
has emphasized on the factors that are useful for the innovative theories of the business.
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Reference List
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Kaplan, S. and Vakili, K., 2015. The double‐edged sword of recombination in breakthrough
innovation. Strategic Management Journal, 36(10), pp.1435-1457.
Lenox, M. and Chatterji, A., 2018. Can Business Save the Earth?: Innovating Our Way to
Sustainability. Stanford University Press.
Mylan, J., Geels, F.W., Gee, S., McMeekin, A. and Foster, C., 2015. Eco-innovation and
retailers in milk, beef and bread chains: enriching environmental supply chain management with
insights from innovation studies. Journal of Cleaner Production, 107, pp.20-30.
Nilsson, S., Björk, J. and Karlsson, A., 2017. Exploring critical situations in the realization of
radical innovation ideas. In Continuous Innovation Network, CINet.
Perin, M.G., Sampaio, C.H., Jiménez-Jiménez, D. and Cegarra-Navarro, J.G., 2016. Network
effects on radical innovation and financial performance: An open-mindedness approach. BAR-
Brazilian Administration Review, 13(4)
Plattner, H., Meinel, C. and Leifer, L. eds., 2016. Design thinking research: Taking
breakthrough innovation home. Springer.
Regattieri, A., Piana, F., Bortolini, M., Gamberi, M. and Ferrari, E., 2016. Innovative portable
solar cooker using the packaging waste of humanitarian supplies. Renewable and Sustainable
Energy Reviews, 57, pp.319-326.
Silva, G.M., Styles, C. and Lages, L.F., 2017. Breakthrough innovation in international business:
The impact of tech-innovation and market-innovation on performance. International Business
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Silva, G.M., Styles, C. and Lages, L.F., 2017. Breakthrough innovation in international business:
The impact of tech-innovation and market-innovation on performance. International Business
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Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, pp.142-155.
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