Novozymes: Cracking the Emerging Markets Code
Posted: 7 Jun 2012
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.
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