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Instruments and strategies to improve the eco‐efficiency of products
Author(s) -
Cramer Jacqueline
Publication year - 1996
Publication title -
environmental quality management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.249
H-Index - 27
eISSN - 1520-6483
pISSN - 1088-1913
DOI - 10.1002/tqem.3310060208
Subject(s) - business , diversification (marketing strategy) , new product development , market share , competitive advantage , upgrade , industrial organization , product (mathematics) , order (exchange) , position (finance) , environmental economics , marketing , risk analysis (engineering) , computer science , economics , finance , geometry , mathematics , operating system
This article examines what tools can be used to analyze and improve the environmental performance of a product. It discusses how companies can upgrade the environmental performance of products in a cost‐effective way and enhance their competitive position in the market through product innovation. Based on current examples, it is concluded that a complete toolbox is available to assist companies in developing more eco‐efficient products. Which combination of practices can best be applied depends on various factors, particularly the type of external demand(s) the company is facing, its available resources, its time horizon, and its environmental strategy. Experience shows that it is better for companies to be ahead of external criticism and act more proactively. This article shows how companies can follow four main strategies in which eco‐efficient product development goes hand in hand with a better competitive position in the market: (1) an efficiency improvement strategy; (2) a market share improvement strategy; (3) a market development strategy; and (4) a product diversification strategy. Finally, the importance of product innovation is stressed in order to implement the eco‐efficiency strategies mentioned above.