Case | HBS Case Collection | April 2012

Novozymes: Cracking the Emerging Markets Code

by Krishna G. Palepu and Karol Misztal

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?

Citation:

Palepu, Krishna G., and Karol Misztal. "Novozymes: Cracking the Emerging Markets Code." Harvard Business School Case 112-084, April 2012.