Developing a competitive strategy for green buildings in South Africa

Abstract

Sustainable and environmental responsible initiatives play an important role in preserving and developing a country. Since awareness on sustainability is gaining traction within the market, an increasing amount of opportunities are manifesting itself and becoming apparent. This study aimed to provide a high-level road map in the form of a strategy to compete and gain future market share within the South African green building environment. The Green Building Council of South Africa (GBCSA) has highlighted lower cost saving, increased asset values, enhanced marketability, reduced liability and risk, retaining major clients, responsible investing, increased productivity, attracting and retaining talent, minimising churn and environment saving as key benefits which inform the current key value proposition. In developing the strategy, strategic vision and the strategic objectives are formulated. The strategic vision provides direction, responsibilities and overall targets. The strategic objectives will break the strategy into manageable portions with specific goals to achieve the vision. Porter’s generic competitive type bas been one of the most influential strategic management concepts. The three generic competitive strategies are cost leadership, differentiation and focus. For the research data collection, experts were interviewed in the built environment using the Osterwalder Business Canvas as a tool. The Osterwalder Business Model is a conceptual tool that contains a set of elements and inter-relationships that explain the business logic of a specific organisation. The Osterwalder Business Model consists of nine blocks that are based on the four key deliverables, namely product, customer interface, infrastructure and financial aspects. Eight participants were interviewed who operated and functioned in the built environment. An interview agenda was circulated prior to the interview to get the participants thinking in line with the objectives of the study. The participants provided insight into the current status and the anticipated future of green buildings in South Africa. The results were tabled and drawn as per the nine key elements of the Osterwalder Business Canvas to evaluate the gap between the present and future, the opportunities were identified and a strategy developed. Green buildings will be the norm and will be regulated by government. Buildings will be off the grid and self-sufficient with minimum external natural resource input. A big driver and contributor to green buildings will be education and awareness of the general public and clients. Continuous research, learning & development is required to stimulate innovation to solve root-cause problems. Integration and optimisation of the entire value chain is important to consider. Buildings are to be carbon neutral and negative to be sustainable. The purpose of green buildings is to reduce and mitigate the negative impact on the environment and to build and operate environmentally sustainable products. There will be growth in fit-out of brown-field buildings waste management, water use, renewable energy. Corporates and developers are the key clients that require face to face and personal attention. The cost incurred is from Capex, Opex and salaries with the Revenue Streams being cost saving on utilities and selling skilled time of professionals. The situation is past the point of basing decisions on cost and the environment needs to be saved