Reference no: EM133204924

Life Cykel is growing start-up company now based in Byron Bay, Australia. It was cofounded in 2015 in Fremantle by Julian Mitchell and Ryan Creed, who had the original idea of using coffee grounds as a cheap and moist soil in which to grow gourmet oyster mushrooms. The young entrepreneurs crowd-funded $30 000, and personally cycled around Fremantle every day to collect the coffee ground waste from numerous cafés, taking them to their urban mushroom farm (a sea container) to mix with straw and mushroom spores. They then sold the 2 mushrooms back to local restaurants, as well as selling mushrooms kits to individual customers.

Not only commercially successful, they have also succeeded in recycling coffee grounds. In Fremantle alone, around 300 tonnes of coffee waste used to go to landfill each year. The used soil is now repurposed as garden fertiliser. And the oyster mushrooms are reportedly delicious!

Life Cykel has since expanded into honey products, out of concern for the immunity of bees. The company employs 10 staff and has strategic partners around the world.

Source: Lifecykel.com/pages/about-us; 'Recycled coffee grounds give rise to Fremantle mushroom farm' by Laura Gartry, 13 May 2016, ABC News.

Using this information, and any additional research that you can find, describe and analyse Life Cykel's competitive strategy, using all of the approaches presented in this chapter.

a. Are they cost leaders or differentiators?

b. What customer need(s) have they focused on?

c. What risks did they take in their early days concerning capabilities and processes?

d. Is their strategy sustainable?

e. Are there any barriers to entry for potential competitors?

f. Identify possible changes that could affect their industry, and how their business would be affected.

g. What is their approach to CSR?

j. Prepare a SWOT evaluation for Life Cykel.