The overall strategy for green products (2)

2 Green Product Portfolio Strategy

The green product mix strategy is to guide and meet the green demand-oriented strategy, and to construct a good green product portfolio that adapts to the market environment and environmental protection requirements, and is suitable for the company's capabilities and development requirements.

2.1 Green product portfolio analysis.

● Product life cycle analysis.

That is, how to integrate environmental protection at all stages from the formation to the disappearance of products, so as to integrate environmental protection into the stage of product movement.

1. Product Life Cycle Definition

The product life cycle analysis (LCA) here differs from the concept of product life cycle in traditional marketing. The product life cycle in the traditional marketing refers to the product's market life cycle, that is, the process of a product in the market from the beginning to the final disappearance, including the investment period, growth period, maturity period and decline period. The life cycle discussed in this book refers to the natural life cycle of the product.

2. Structure and Strategy of Product Life Cycle Analysis

(1) Product System

Product systems include the satisfaction of product functions and all other processes required to meet these functions. The main processes are the production, use, and disposal of waste products. The quality of a product is characterized by a "functional unit" which refers to a service or use value provided for a user or a process. In a sense, the functionality provided by the product system is more important than the product itself.
(2) Process tree
A block diagram of the life cycle of a product system can be represented by a "process tree." Figure 1 is a simple process tree. The process tree has roots and branches. These roots and branches are linked to each other and linked through a central point and use of functions. The "root" in the figure refers to the production process of the material, the branch is the processing of the waste, and the central point is the consumption process, which is usually called "use of the product."


(3) Structure of Product Life Cycle Analysis

The product life cycle analysis involves the system shown in Figure 3 and accordingly includes three separate but interrelated parts. Product systems, while providing functional services, ingest resources and energy from the environment and discharge waste and pollutants to the environment. For example, SO2 is emitted to the environment. This constitutes a so-called "environmental intervention." The inventory analyzes all the processes that occur in the environment. It conducts analytical research through “categorization” (called environmental impact analysis). Classification is the use of models to correlate environmental interventions of product systems with the environmental functions of environmental systems, pointing out the contribution of product systems to certain recognized environmental effects, and quantifying these contributions using “effect ratings”. Changes in the functions of the environmental system will lead to a series of undesired negative consequences, such as harm to human health, loss of agricultural production, destruction of forests, impact on landscapes, damage to ecosystems, and so on. These consequences all have an impact on human society. The laws, regulations, guidelines, and signs of human society constitute a normative system. The role of the environmental system needs to be evaluated, and the final decision is made on the basis of the assessment; or the advantages of different product systems are eliminated. In order, or to determine the product system to take the perfect measures to reduce the impact of the product on the environment.

(4) Inventory Analysis

Inventory analysis is an integral part of the product life cycle analysis. It is an item-by-item analysis of each of the product systems' environmental impacts. To carry out this kind of analysis, firstly the format is best represented by a framework with a nested structure, because the data of the process usually has a multi-level structure.

(5) Environmental Impact Analysis

Environmental impact analysis or classification is an integral part of the product life cycle analysis. It can be defined as the quantification of the product system's environmental interventions against some recognized environmental issues. 

In general, different types of environmental interventions over hundreds of years can be aggregated into 10 to 20 "effect scores." Methods used for classification, classification coefficients, etc. are not analyzed here. Only a simple study is conducted on how the product affects the environment. 

The primary basis for classification is to list a list of recognized environmental issues during the product's life cycle. Environmental issues can be expressed as processes/mechanisms or expressed as environmental effects. At the first international conference held in Leiden, the Netherlands, in December 1991, a list of recognized environmental issues for environmental issues to be considered in the analysis of product life cycles lists three types of environmental issues: 1 Consumptive . Include all issues related to ingesting a substance from the environment; 2 Contaminated. Including all the issues for the discharge of pollutants to the environment; 3 Destructive. Include all issues that cause changes in the environmental structure.


(6) Assessment

By categorizing, that is, analyzing each product's different interventions or impacts on the environment one by one, the impact of the life cycle of each product on the environment can be used to represent several (10 to 20) effect scores, and the next step is to score according to these effects. A comprehensive assessment of the life cycle of a product. The assessment is relative. That is, comparing the impact of different products on the environment, it may sometimes be the case that some of the product A's effect scores are better than those of B products, while others have scores that are inferior to those of B products. How to evaluate the benefits of both products What is wrong with this? It is necessary to propose a total index that can comprehensively reflect the scores of each effect. The purpose of the assessment is here. There are two types of assessment methods to date: qualitative multi-criteria analysis and quantitative multi-criteria analysis.

Qualitative assessment is usually a comprehensive evaluation of the effect ratings of the product life cycle provided by a panel of experts. Finally, the products discussed are sorted and their impact on the environment is determined.

Quantitative assessment is performed through the weighting of various effect scores, but so far there is no recognized weighted system table, so this aspect is also quite difficult in practical application.

● Product line analysis of green products.

The analysis of product lines usually involves both the width and length of the product line. The width of the green product line indicates the number of green product lines the company is operating. The length of the green product line indicates the number of green product types in the product line that the company operates.

1. Green product line width analysis.

For enterprises that run green products, they must pay attention to social benefit letters and contributions to environmental protection, and they must obtain operating profits. Different product lines have different profitability, different contribution to environmental protection and potential for future development. The analysis of the width of the green product line can be evaluated by factors such as comprehensive profitability, environmental contribution, and growth potential of the green product line, as a reference to formulate the company's green product portfolio strategy.

The company can evaluate all the products it operates from the above three aspects, and mark its position in the chart. After a comprehensive comparison, it decides the strategy of the product portfolio of the company to form a good product portfolio.

In addition, all product lines within the product line can also be evaluated from the above three aspects to determine the good combination of product items within the company's product line.

(to be continued)

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