mango materials
DESCRIPTION
Industry analysisTRANSCRIPT
Ashley EvansJames Jordan
Sierra LawChris Wiebe
Jasmine Kurywczak
Agenda
1. Introduction2. Getting to Know: Mango Material3. External Environment4. Internal Environment5. Analysis of the Industry6. Mango Materials Issues: Company and Industry Wide7. Possible Solutions to Issues8. Ideas for the Future Direction
Introduction
The "Green" Movement"The future will be green or not at all. This truth lies at the heart of humankind's most pressing challenge: to learn to live in harmony with the Earth on a truly sustainable basis"- Sir Jonathon Porritt, Economist
The "Green Product": BioPlastics• Definition: Plastic derived from a plant based source, such as corn starch or
vegetable oilo An alternative to petroleum-based fossil fuels
BioPlastics Viability• 90% of plastics can be replaced with BioPlastics
o US plastics industry currently grosses $379 billion annually• BioPlastics is expected to take 30% of the US plastics market share by 2025
Meet the Founder • Molly Morse, PhD, CEO –
Grad/PhD student of Stanford in Civil and Environmental Engineering
• Clean tech consultant o Mayfield Funds
• Started Mango Materials based off research in bio-composites and bio-plastics
Meet the Contributors
• The team: Also includes Bill Shelander- Business Development, 20 years venture capital experience
• Cleantech Open Mentorso Andra Pligavkoo David Rummlero Nabeel Hasnain
• Advisory Board:o Sarah Billingtono Craig Criddle
Technology
• Process = “Cradle to Cradle”o Methane --> Microbial Process --> BioPolymer --
> Products --> Modern Landfill or Digester --> Methane Requires minimal inputs and the byproducts are
recycled back into the patented production process Taking gas and making PHA pellets
Uses: structural plastics (toys, packaging, water bottles, etc)vs functional plastics (cosmetics)
Mango’s Patent-Protected Process
Current Economy
Socio-Cultural
• Traditional and Social Media arespreading the word “Green is in”• People are voting with their dollar for
compostable and renewable products!• Disasters like the BP oil spill are only
exacerbating consumers to cry out for renewable technologies.• People are getting vocal,
“hey pick that up!”
Political/Legal
“Going Green”
• Receiving support on a political level• In mid 2009 the San Francisco Board of Supervisors
approved a measure to improve upon the existing waste management policies.o Residents are now held accountable for improper
disposal of compostable, recyclable, and landfill-destined waste.
Suppliers
• Agricultural: Released from farming• Municipal: Sewage waste/ landfills• Industrial: Bi-product• Stranded: Methane Fields
Competitors
Five Forces Model
• Threats of New Entrantso Medium to High
• Bargaining Power of Supplierso Medium
• Bargaining Power of Buyerso High
• Threats of Substitutable Productso Low
• Rivalry Among Competing Firms
o Low
Bio-plastics Industry
• Petro-plastics• Bio-plastics
o Cereplasto Metabolixo Natureworkso DuPonto Tianan Biologicso BioCycleo Biomer
• Spargers• Fermenters• Bio-Reactors• Extractors• Methane
o Agriculturalo Industrialo Municipalo Stranded
Structural Plastics• Agriculture• Building• Electrical• Furniture• Materials Handling• Packaging• Transport
Functional Plastics• Medical• Pharmaceutical • Paints• Cosmetics• Detergents• Toys
• Additives -• Digesters
o Wet anaerobico Dry anaerobic
• Engineering, Construction & Project Management Services
The Internal Environment
• Resources (tangible and intangible)o A patented processo Intelligence of Staff
• Core Competencies o Developed a patented process to produce PHB from
methane-consuming bacteria, a process that is much less capital intensive and has significantly lower operating costs
Consumers
Consumers: • Plastic converters who extrude, mold, and
form plastic to produce materials such as bottles, toys, plastic packaging, electric casing, and filmsoRubbermaid, Green Toys, Steelcase,
Cereplast
Strengths
• Produces PHB, requires just 57-77% of the energy required for the production of petroleum-based plastics
• Company uses methane as the feedstock instead of glucose and sucrose, which saves the company 30%o Price is comparable to that of petroleum-based
products, and half the price of other biodegradable plastics
• Higher ROI than other methane useso Such as: to power vehicles or heat/power buildings
Weaknesses
• Have not yet been able to demonstrate pilot scale production capability
Threats• Plastics Industry on the whole, an unsustainable
industry.
• Greater transparency regarding environmental degradation due to non bio-degradable plastics
• Bio-plastics made from sugars sourced from grain and sugarcane, are in direct competition with world food supplies.
• Petroleum-based products are currently the cheapest and most widely used.
Opportunities
• Bio-plastics industry-o Undercut Petroleum Market
• Horizontal Integrationo Complementary Operations
ie. Digesters, construction, engineering etc.• Backward Vertical Integration
o Securing future methane supply• Forward Vertical Integration
o Toys, packaging, closing the loop
• Positive Impacton the environment• Best of both worlds
• Lower cost than thosecompeting w/bio and petro-plastic.
Opportunities
Problems:
• Need to Enter Marketo Technicalo Costo Product Acceptance
Technical Solution
• Financing: Get Out of Labo Loan, Grant, Venture Capitalisto Trade Shows
Clean Tech Openo Department of Agriculture Bio-Preffered Program
Cost Solution
• Contact High-End, Specialized Producers • Promote Tax Incentives
o Federal Research and Development Tax Credit "Encourages U.S.-based manufacturers to innovate and invest
back into their businesses in order to compete more effectively on a global basis”
Product Acceptance Solution
• Offer a Free Sample Once they are able to produce at a larger capacityo Children Toys, Construction, Packaging, etc.o Currently many companies want samples of Mango's product
7 liter reactor doesn't allow them the capacity
The End
Any Questions?
**All Information came from the material that was given to us by professor**