MGT309 Competitive Advantage: Strategic Management

PROBLEM SOLVING CASE STUDY

SUMMARY ON HOW TO MAINTAIN OR IMPROVE
COMPETITIVE ADVANTAGE
(BHUTAN ALTERNATIVES)

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Table of Contents
Summary ................................................................................................................................. 4-5
Reference .................................................................................................................................... 6

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Summary on how to maintain or improve competitive advantage.

Bhutan Alternatives is a "Social Entrepreneur" with the aim of achieving "Zero-Waste" by

maximizing resource recovery and creating a long-term e-waste management system. Bhutan
Alternatives collects e-waste and recycles and refurbishes printer cartridges. The creation of this
venture was prompted by a shortage of e-waste entrepreneurs, an excess of resources, and the
enormous social and environmental benefits of the company's operations. The business began
with a capital of Nu 500,000 in 2015 and is now worth Nu 28 million. It was established with the
goal of ensuring the long-term use of toner cartridges in the country. Factors that allow a
business to manufacture products or services better or more cheaply than its competitors are
referred to as competitive advantage. These factors allow the profitable organization to produce
higher profits or higher margins than its competitors. A number of factors contribute to
competitive advantages, including cost structure, branding, product efficiency, distribution
network, intellectual property, and customer service. Bhutan Alternative is the only company in
the country that refills toner cartridges and places them on store shelves for customers at a lower
cost. The prices are 60-70 percent less expensive, with no reduction in print quality or quantity.
Although there is no company in Bhutan that manufactures toner cartridges, there are a number
of retail stores, such as DSB Enterprise and Pekhang Enterprise, that sell toner cartridges at
significantly lower prices. Due to the lack of online marketplaces such as Amazon and eBay in
the region, Bhutan Alternative has more space to expand their product sales scope. Since this
product does not have a manufacturing industry in the country, everything must be imported
from a neighboring country. The not so strong presence of the company in the social media and
internet platforms limits their reach and narrows their coverage. In other to gain a competitive
advantage in this area they should plan a strategic and a much more aggressive marketing using
these platforms. The company would be able to tap into the market of individual or household
consumerism if they build and sustain this network. This also improves the company's standing
and visibility in the market. With their already very low pricing and environmentally friendly
front, the company would be able to tap into different markets and draw customers. By sharing
the information on social media, the company will gain new customers. The other hurdle that the
company faces at the moment is the shortage of empty toner cartridges and the ability to meet the
demands of the customer. Maintaining a reliable supply of cartridges is a major challenge since
the business mainly relies on an environmentally friendly strategy and recycles cartridges. The

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company needs to develop a program that allows people to sell their unused cartridges to solve
this problem. This would end the cartridge shortage, enabling customers to avoid being turned
away because they were short of the product. Furthermore, the firm has been awarded
government contracts to supply printer cartridges. However, due to the nature of such inventories
being auditable at the end of the fiscal year, the company is unable to access any used cartridges
for a year. As a result, the bulk of the cartridges would be unused and kept on government
property uselessly. Furthermore, thanks to government contracts and approaching civil sectors,
the company will have a guaranteed income regardless of other factors. As a result, the
organization will contact and contract with companies that specialize in printing to solve such an
issue. Furthermore, if the company can come up with a plan that allows people to sell their used
cartridges at a reasonable price, it would have an unlimited supply of refillable cartridges.

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Reference.

Bhutan Alternatives. (n.d.). https://bhutanalternatives.com

Choden. K. (September 7th, 2019). BBS. Bhutan Alternatives, a story of an entrepreneur.
http://www.bbs.bt/news/?p=120805
Tshering. (June 21, 2018). Business Bhutan. Face to Face: Leki Dawa, a social entrepreneur who
recycles e-waste, printer cartridges. https://businessbhutan.bt/2018/06/21/face-to-face-

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