1. Determine Feeds Most Likely Source Of Competition In Both The Short And Long Term.
The most important source of competition for Shane is his introduction of decentralized system, as most of the large producers of waste management have ignored the small market segment including grocery stores. Hence, this focused strategy in concentrating only on the small segment of the market and initiating the decentralized anaerobic system. Moreover, Europe also has focused on the large scale food waste digestion anaerobic system. So, on site model integration will highly be appreciated because of the increasing green technology and fuel prices. Shane has rightly focused to build in the on-site decentralized model which in long term can be implemented in any company or business sector for the production of energy.
Since, the current green technologies are becoming highly expensive for the small scale business owners to adopt certain technology. Moreover, the other technology has used transportation add-on to move waste from and to company for the energy production. But increasing oil/energy prices has discouraged most the small business owners to install the waste management system for energy production. Therefore, apart from other sources Shane's most likely source of competition can be granted to its target market (small business) and on-site model in particular.
2. Discuss Why Venture Capitalists Are Interested In This Business.
The success at highly rated Rice University Business plan competition by earning a sustainability award and winning other competitive competition boosted the interest of potential investors in Shane's Feed Resource Recovery (FEED) business plan (Hbr.org, 2009). Plan was practically executable enough to generate the huge profit, which was the other reason to attract the investors for the particular project. Moreover, the Feed system has already attracted enough investors during competition but the only problem on ...