Green Factory as a Competitive Strategy: The Case of Brandix

Abstract

Competitive strategy refers to how a company competes in a particular business and is concerned with how a company can gain a competitive advantage through a distinctive way of competing. Depending on the nature of the business, management can be more or less specific in articulating key operating policies, once they are specified: the concept of strategy can be used to guide the overall behavior of the organization. Among many local industries, the garment industry faces severe competition and risk not only from local players but also from global players. Therefore, differentiating from others is highly crucial. Sri Lanka’s apparel industry has grown to be one of the largest contributors to export revenue The country having established itself as a reliable supplier of quality garments at a competitive price, also upholds ethical practices backed by legislation, thus being identified as a producer of “green garments without guilt.” The aim of this study is to investigate the concept of “green factory” and if it has truly contributed to competitive standing in relation to “Brandix” among other garment manufacturers. The study also focuses on detailed examination of benefits and costs to the company from such implementation. In order to gain a better understanding of the study, six focus areas have been used as measures of performance. Data was collected from the period immediately prior to the implementation and period immediately after the implementation of the project, through a variety of research techniques such as questionnaires, personal interviews and focus groups. Findings of the study revealed that the green building project significantly affects in enhancing the industry standing of “Brandix” over competitors. The project implementation has a high impact on competitive position and competitive strategy of the company as it drives a strategic change.