Interface's Evergreen Services Agreement Case Solution
Interface Americas, which is a leading maker of commercial carpet tile, has established the Evergreen Services Agreement (ESA), so as to diminish its footprint in ecology--a lease arrangement that supplies would be carpeting purchasers with all-inclusive floor covering services (color, texture, warmth, beauty, acoustic guitars, and security). Under ESA, Interface keeps possession of all carpeting stuff, thus ensuring appropriate recycling.
Despite lots of curious calls from prospective buyers and active media interest, Interface is having trouble selling ESA. CEO Dan Hendrix must determine whether to continue support for ESA or to concentrate on other initiatives and is at a crossroad. This instance, grounded in an unsuccessful dialogue with the University of Texas, Houston, details a discussion of the problems of structuring a long term lease arrangement, providing new proposition for value for the customers as well as creating a strong business model for the services related to the product.
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
PUBLICATION DATE: February 25, 2003
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