Name: Abdalla Khalid Alyassi. ID#: 200004312. Subject: Strategic Marketing & Innovation (MBA 6203). Instructor: Dr. Pedro Coelhoso. Date: 13th March, 2017.   Table of Contents Introduction 3 Concept and Vision 3 Market Analysis 4 Customers and Customer Development 5 Competition and Positioning 6 Proposed Business Model 7 After Analysis of Potential Opportunities 7 Purpose and Objectives 8 Data from primary sources 8 Data from secondary sources 10 Analysis and Interpretation of Results 10 Conclusion 11 References 12 Appendix 1 14   Introduction This paper is going to define an innovative business venture opportunity that can be turned into a scalable business. In this sense, this essay will define market opportunity through the analysis of the target market and competitors. For this essay, the production of recycled (Carbon) fiber from the trash gathered from the street is selected as an innovative business venture. To analyze the feasibility of the innovation, Asian market such as China is chosen for the implementation of this business opportunity. Concept and Vision Production of clothes from trash is a totally new innovative idea. This idea has come from a news given by “Robert Ferris (2016)”. In that author wrote about the issue related to the dumping of huge plastic products into the ocean from Asian countries such as China that is increasing pollution in natural water and affect the livelihood of people living nearby Ocean (Jing, 2017). This idea of innovation has come because most of the communities in each country are showing their concerns towards the protection of natural resources such as water for our next generation. In addition, the current market is showing great interest of customers towards the eco-friendly products or recycled products (Jing, 2017). Figure 1: (Source: Winn, 2016) Hence, it can be said that there is a huge opportunity for the recycled products. In this context, the solution proposed in this paper will not only help the communities nearby ocean to put down their issues related to the pollution of the ocean. This is because the trash of plastic bottles or other plastic materials will be used for producing fibers that will be used to produce cloth materials. The nature of this proposed solution is eco-friendly that will make this solution more compelling. This is because the production of a garment from trash will not only fulfill the demand of fibers to produce clothes, but also help to reduce the level of pollution that may take place after the dumping of plastics in soil or ocean. Hence, the proposed solution will make the world a better place (Muthu, 2016). Adidas an American company has started to produce the garment from plastic, but the company is collecting plastic from the local market and the growth in the sales of recycled products is showing the success of the company. But, the step taken by Adidas is very small in comparison of the growth in the amount of plastic trash. On the other hand, Adidas has not targeted the Asian countries' customers yet. Hence, opportunity related to the production of recycled clothes from plastic trash is still attractive. This innovative idea does not need intellectual property because it includes betterment of societies and it is a moral right of each country and business to share knowledge and technology with the help of societies (Muthu, 2016). Therefore, the proposed innovative idea does not support any kind of license to protect the business. Market Analysis Above defined innovation is related to the Apparel Industry. The market for this industry is more attractive because of the short life cycle of the products, which creates regular demand. On the other hand, sudden changes in the customer’s need maintain the demands of Apparels regularly, which make this market more attractive for the garment producers too (Muthu, 2016). The proposed innovation will target small and big manufacturers of the Apparel. This is because they demand fibers to produce garments and our proposed innovation will ensure the supply of fibers. In describing the need for manufacturers in the concerns of the fibers to produce clothes, there will be a need of data related to demand for fibers in respecting years and upcoming years. This data will effectively describe the demand of the target market. A report defines that the market size of fibers produced from recycled products will be reached $74.65b by 2020 (Frankly Media and Kake, 2017). The report is also showing the 11.46% growth in the demand of recycled fibers from 2015-2020 (Frankly Media and Kake, 2017). The main factor behind the anticipated growth of the recycled fiber market is strength and comfort, which are replacing the demand of organic cotton fibers. Therefore, it can be stated that the proposed growth in this market will ensure the long-term growth. Customers and Customer Development For the growth and survival of a project idea, categorization of the customers or the selection of the customers is most important. In this context, the main target customer for the proposed innovative business idea is the manufacturer of Apparel. This is because the Apparel manufacturer needs fibers to produce the clothes that will be fulfilled by the supply of fibers produced from the trash of plastic collected from street garbage (Muthu, 2016). Nowadays, Apparel manufacturers are using the cotton fibers, but the changes in the environment badly affecting the production of natural cotton fibers. Therefore, manufacturers are facing a lack in the supply of fibers, which also affecting regular production of the garments. In this sense, the production of fibers from plastic trash will facilitate the manufacturers to get the regular supply of fibers, which are also a demand for Apparel manufacturers in most countries (Muthu, 2016). To reach such customers, I will use Apparel promotion council of Asian countries such as China through their websites. This method will help the real manufacturers of Apparel because “Apparel promotion council” is a promoter of manufacturers in the world market. Competition and Positioning To fulfill the demand of target customers, I will ensure the collection of trash from the coastal areas of the ocean. For this, I will make a team of coastal areas’ trash suppliers in Asian countries such as China, who will provide trash of plastics to produce plastic fibers. This method will help our team to serve this market in the future. This method is good for me because the coastal area trash supplier will not demand a high price for plastic garbage because the collection process will help them to protect the ecology of the coastal areas nearby ocean. To ensure the regular supply of trash in the future, I will make sure the benefits of the trash suppliers by offering social security for their families such as education, house and good earnings from the earning profits. This method will help to ensure a long-term relationship with the suppliers of trash that will not break the production of plastic fibers. The proposed innovative idea will also help the competitors such as Adidas and Nike because these companies are still engaged in the production of eco-friendly fibers to produce low cost garments (Muthu, 2016). But, these companies have some weaknesses. Adidas and Nike both are American companies and people of China do not want to consume products produced or supplied by the American nationals. On the other hand, my proposed business idea includes the local trash suppliers in China and other Asian countries, which will help to ensure the regular support of local bodies and government to run such business project and get leadership position in concerning the marketplace (Muthu, 2016). An Indian company such as Grasim Industries Limited (India) is a top supplier of eco-friendly fibers in the Asian region and the report is showing growth in its sales by acquiring a 35% share of the market (MarketsandMarkets Research Private Ltd, 2017). Therefore, Asian market such as China is a target market, but there are several barriers to entry. For example, the production of fibers from plastic trash will produce air pollution while China has implemented various taxes on the Air polluting industries for the protection of public health from Respiratory diseases(Muthu, 2016). Similar barriers are also faced by the competitors such as Grasim Industries Limited and Adidas and Nike. But, the local suppliers (partners and allies) will help me during start-up to overcome the competitors’ barriers because they will help to address legal issues related to the government effectively. Proposed Business Model The available opportunity in the Asian market and the regular demand of the non-biological fibers to produce garment will help me to turn an innovative business idea into a viability business opportunity. I will convert the entire business opportunity available in the Asian market through the help of below are defined terms because these terms will help to make effective business policies to overcome the market barriers and to earn short and long-term profits. After Analysis of Potential Opportunities The entire world is changing due to the drastic growth in globalization, which is replacing nations’ boundary from profitable business opportunities. This phenomenon is also increasing share of knowledge and technology from one market to others. On the other hand, the changes in production technology are also changing the entire world because it facilitating to use produced good to produce new products once against (Muthu, 2016). This process reduces the demand on natural resources and allows people to protect the environment effectively. Therefore, it will benefit me because of its positive impacts on the production of recycled fibers. Globalization has also increased awareness of people to protect natural resources from mixing of harmful plastic products that increasing the need for recycling products. Article “Recycling for Profit: The New Green Business Frontier” written by David Biddle in 1993 explained about the benefits of recycling for humanities and business. Another Article, such as “Companies Are Working with Consumers to Reduce Waste” explains that companies are trying to reduce the trash through the help of consumers to make profits. These articles also support above defined innovative idea. Purpose and Objectives The purpose behind the innovative idea is to ensure the protection of coastal area communities’ health and life of Ocean animals to maintain the relationship between human and ecology. The objective behind the purpose of recycled fiber business is to replace the plastic garbage from being a part of Ocean and fulfill the demand of low cost Apparel in the Asian market through the use of advanced technology and to produce. Data from primary sources To get real data about the opportunity of recycled fibers in Asian market, a questionnaire has to send to target audience such as Apparel manufactures. For this, questioners have sent to 30 manufactures and only 20 have replied only. As per the view of respondents against question first, they told that demand for recycled fibers are growing day by day because of the low supply of natural cotton fibers. In the context of the second question, the respondents said that the shifting of customers demand towards low cost quality garment is another reason to move towards the use of recycled fibers to produce cloths. In the last, the selected respondents told that there is limited availability of recycled fibers in China and other Asian reason because of the poor technology. Data from secondary sources As per report, the demand for recycled (Carbon) fiber in 2016 was 83,000. This demand was 12% more than the actual demand in 2015 (Frankly Media and Kake, 2017). The report also explains that the consumption of carbon fiber in China in 2016 was 19,000 tons that were only 22.9% of total global productions (Frankly Media and Kake, 2017). China was just produced 24.9% of recycled fibers in 2016 that will be reached 35.0% till 2021 (Frankly Media and Kake, 2017). Hence, there is a huge demand for recycled fibers. Therefore, my innovative business concept will help me to provide a complete substitute to manufacturers of China. Analysis and Interpretation of Results The interpretation of the first answers reflects the growth in the demand of recycled fibers in the Asian market. It means above defined innovative business idea has feasible in the market because of the regular growth in the demand. Most of the respondents favor the growth option. After the interpretation of the second answer, it can be said that the cost, quality and durability of the fibers are some reason that is motivating the manufacturers from natural cotton fibers towards the non-natural fibers. It means the fibers produced from the trash of plastic garbage will work as a best option for the manufacturers because of its strength, quality and durability. Interpretation of third answer defines the limited availability of the fibers in China is also creating demand for the recycled fibers. Conclusion On the basis of the above discussion, it can be concluded that Asian market for example, China is a target market, where I can implement the innovative idea such as the production of fibers from trash of plastic garbage because of the available opportunity and circumstances in the market, which have explained effectively. Above discussion also explained that above defined innovative idea will not only help to gain short-term business growth but also gain long-term growth in the market.   References Biddle, D. (1993).Recycling for Profit: The New Green Business Frontier. Retrieved from https://hbr.org/1993/11/recycling-for-profit-the-new-green-business-frontier Espositom M., Tse, T. & Soufani, K. (2016). Companies Are Working with Consumers to Reduce Waste. Retrieved from https://hbr.org/2016/06/companies-are-working-with-consumers-to-reduce-waste Frankly Media and Kake. (2017). Carbon Fiber Market and CFRP Industry: Analysis, Chain Structure and Trends 2017-2021. Retrieved from http://www.kake.com/story/34657640/carbon-fiber-market-and-cfrp-industry-analysis-chain-structure-and-trends-2017-2021 Jing, Li. (2017). China produces about a third of plastic waste polluting the world’s oceans, says report. Retrieved from http://www.scmp.com/article/1711744/china-produces-about-third-plastic-waste-polluting-worlds-oceans-says-report MarketsandMarkets Research Private Ltd. (2017). Eco Fibers Market worth 74.65 Billion USD by 2020. Retrieved from http://www.marketsandmarkets.com/PressReleases/eco-fibers.asp Muthu. S. (2016). Textiles and Clothing Sustainability: Recycled and Upcycled Textiles and Fashion. Springer. Peters, A. (2017). Timberland's New Line Is Made From Trash Collected From The Streets In Haiti. Retrieved from https://www.fastcoexist.com/3068876/timberlands-new-line-is-made-from-trash-collected-from-the-streets-in-haiti Winn, P. (2016). 5 countries dump more plastic into the oceans than the rest of the world combined. Retrieved from https://www.pri.org/stories/2016-01-13/5-countries-dump-more-plastic-oceans-rest-world-combined   Appendix 1 Name: Age: Question 1: What you think about the demand of recycled fibers in global market? • Increasing • Decreasing • Nothing Question 2: According to you, what is a main factor that is shifting manufacturers toward recycled fibers nowadays? • Low cost • High Quality • Durability of Fibers • All of the above Question 3: Do you think, there is enough supply of recycled fibers? • Regular supply of Fibers • Limited Supply of Fibers