Novozymes: Cracking the Emerging Markets Code

Posted: 7 Jun 2012

See all articles by Krishna Palepu

Krishna Palepu

Harvard University - Harvard Business School; Harvard University - David Rockefeller Center for Latin American Research; Harvard Business Review; NBER; International Academy of Management

Karol Misztal

Harvard University - Business School (HBS)

Date Written: April 4, 2012

Abstract

In 2011, the management of Novozymes, the industrial enzymes leader, reflected on the viability of their positioning in the fast growing, yet increasingly competitive Chinese market. Novozymes, a technological innovation pioneer, was prominent in China's premium enzyme markets, but felt pressure from local low-cost rivals in volume-driven, commoditized segments. How should Novozymes relate to local competitors? By competing on technological innovation only in high-margin verticals? Or through a separate subsidiary with a new low-cost business model for commoditized verticals?

Learning Objective: To discuss competitive strategies for engaging local competitors in emerging markets and their business model implications.

Suggested Citation

Palepu, Krishna and Misztal, Karol, Novozymes: Cracking the Emerging Markets Code (April 4, 2012). Harvard Business School Accounting & Management Unit Case No. 112-084, Available at SSRN: https://ssrn.com/abstract=2079080

Krishna Palepu (Contact Author)

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Karol Misztal

Harvard University - Business School (HBS) ( email )

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Morgan 270C
Boston, MA 02163
United States

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