Dynamic Strategy - Current event - EcoATMs: A solution to recycle our electronics

EcoATMs: A solution to recycle our electronics

Mark Bowles, Robert Genthert, John Beane, and Eric Rosser saw that there was a big “gap” in recycling electronics, as only 3 percent of phones worldwide were recycled or reused, and decided to take advantage of that opportunity. Thus, they created EcoATM, a company that recycles electronics. In their EcoATMs anyone can recycle their electronics (cellphones, mp3 players, and tablets) and receive cash instantly. These EcoATMs can be found in malls or grocery stores and they are very easy to use.

The strategy of the company is to offer instant cash to people who want to sell or recycle their old electronic devices. That’s actually their competitive advantage against their competitors like GameStop. People can also sell their electronics in these stores, but unlike EcoATMs, customers in GameStop have to go to their local store to sell their device and get paid. Another competitor, buymytronics.com, which was acquired by GameStop, offers instant quotes but customers get their money in about a week. Thus, for instant money and environment friendly recycling, EcoATMs are a better choice for customers.

Building on their competitive advantage, EcoATM improves its ATMs by adding more features. Latest EcoATMs require each user to scan his/hers driver’s license to complete the transaction. Also, they are equipped with cameras that take the customer’s photo and compare it with his/her photo ID. By taking these measures EcoATM tries to protect its machines of becoming a “cash mecca for thieves” that can sell stolen phones to EcoATMs for quick cash. Another example of the dynamic strategy and dynamic development of the company is the fact that it enhances its ATMs by adding bigger database, highly efficient artificial intelligence system, and better algorithms to their latest ATMs, in order to provide better and quicker service to their customers.

In my opinion, this company is a good example for managers and entrepreneurs-to-be, of what they can succeed if they are smart enough to spot a “gap” in an industry and try to take advantage of it. However, what this story also tells to managers is that once they establish their company they should follow a dynamic strategy that would help them to evolve and provide better service/products to their customers.

Sources

·         Gail, Huff (2012), “EcoATM's give quick cash for old cell phones, MP3 players”, [available at http://www.wjla.com/articles/2012/11/ecoatm-s-give-quick-cash-for-old-cell-phones-mp3-players-82497.html ]

·         Caroline, Winter (2012), “EcoATM, the Automated iPhone Pawn Shop”, [available at http://www.businessweek.com/articles/2012-09-27/ecoatm-the-automated-iphone-pawn-shop  ]

·         Cliff, Edwards (2012), “GameStop, Without the Games”, [available at http://www.businessweek.com/articles/2012-08-09/gamestop-without-the-games ]

·         buymytronics.com (2012), “How it works”, [available at http://www.buymytronics.com/how-it-works.aspx ]

·         Kiosmarketplace.com (2012), “EcoATM could be cash mecca for thieves”, [available at http://www.kioskmarketplace.com/article/204057/EcoATM-could-be-cash-mecca-for-thieves ]

·         Denise, Goolsby (2012), “Cash offered for old phones at new ATM”, [available at http://www.mydesert.com/article/20121125/NEWS01/311250013/Cash-offered-old-phones-new-ATM ]