Patagonia (B)

Forest   Reinhardt; Ramon  Casadesus-Masanell; Lauren  Barley

Supplement | HBS Case Collection | January 2014

Patagonia (B)

by Forest Reinhardt, Ramon Casadesus-Masanell and Lauren Barley

Abstract

Patagonia produces high-quality environmentally friendly garments that command significant price premiums. In Spring 2010, Patagonia rolled out a new, radical environmental initiative called "Product Lifecycle Initiative" (PLI), which was committed to lengthening the lifecycle of each product and reducing landfill waste. This case provides an update on Patagonia's PLI as well as on other company environmental and social commitments.

Keywords: corporate strategy; environmental management; business models; beliefs; product differentiation; Product lines; Yvon Chouinard; Rose Marcario; retailing; corporate social responsibility; apparel manufacturing; Strategy; Apparel and Accessories Industry; United States;

Language: English

Format: Print

15 pages

Purchase

Citation:

Reinhardt, Forest, Ramon Casadesus-Masanell, and Lauren Barley. "Patagonia (B)." Harvard Business School Supplement 714-465, February 2014.

Trust Merchant Bank, a leading bank in the Democratic Republic of Congo, needs to decide whether to enter the soon-to-be-liberalized insurance industry. Since its founding in 2004, TMB has played a pivotal role in reshaping the DRC banking landscape. In TMB’s early years, existing banks in the DRC were almost exclusively focused on corporate clients in the major cities. In contrast, TMB targeted underserved towns and focused on retail clients across all income levels, offering them no fees for deposits or withdrawals. These services distinguished TMB from competitors and enabled its rapid growth to become one of the largest banks in the DRC. More recently, TMB’s launch of the mobile banking platform Pepele Mobile, the first of its kind in the country, strengthened TMB’s mission of inclusive finance by providing access to a broader population. In 2018, the Congolese government decided to open up the insurance industry, formerly a monopoly of the state-owned and acutely mismanaged Société National d’Assurances (SONAS). TMB is considering applying for the newly available insurance licenses as the bank is well-positioned to capitalize on its existing banking infrastructure to begin selling insurance. On the one hand, if TMB enters insurance, there is no guarantee that the Congolese people will react favorably to the bank’s new offering. Furthermore, TMB will need significant resources and internal capabilities to successfully navigate this uncharted territory. On the other hand, perhaps growth potential for TMB in banking will become increasingly limited as its competitors also focus on financial inclusion. In this new context, perhaps it is time to try something new. The benefits of TMB’s focus on customer service and financial inclusion could carry over to the insurance sector.

Case | HBS Case Collection | September 2019 (Revised May 2020)

Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market

Ramon Casadesus-Masanell and Pippa Tubman Armerding

This case discusses the challenges faced by Kenyan alcoholic drinks producer Keroche Industries Limited in 2003, when the Kenyan government accused the company of manufacturing and selling substandard alcoholic drinks, revoked its liquor licenses, and shut down its manufacturing facility. At the same time, the multinational East Africa Breweries Limited (EABL) was planning to enter the same low-income market as Keroche. The husband and wife duo Tabitha and Joseph Karanja had founded Keroche in 1997 with the aim of providing Kenya’s low-income consumers with a cheap and safe alcoholic drink alternative, since these consumers frequently turned to unregulated, informally brewed alcohol that could blind or even kill those who drank it. However, the government was now claiming that Keroche, too, produced substandard drinks. Tabitha Karanja was convinced that EABL was behind these government attacks. The case describes the history of Keroche and EABL, and asks what Tabitha Karanja might do now to combat the allegations of the government and respond to the factory closing.

Keywords: Keroche; alcohol; wine; manufacturing; informal market; regulation; illicit; illegal; shutdown; factory; low-income consumers; multinational; local; government; allegations; accusations; negative press; EABL; Tusker; beer; SAB; chang'aa; Naivasha; Rift Valley; East Africa; lawsuit; legal battle; Business Ventures; Business Exit or Shutdown; Business Growth and Maturation; Business Startups; Production; Safety; Quality; Distribution; Small Business; Family Business; Crime and Corruption; Customer Focus and Relationships; Decisions; Income; Demographics; Geographic Scope; Geographic Location; Goods and Commodities; Government Legislation; Growth and Development; Business History; Lawsuits and Litigation; Laws and Statutes; Lawfulness; Goals and Objectives; Consumer Behavior; Market Entry and Exit; Problems and Challenges; Social Issues; Poverty; Strategy; Competition; Entrepreneurship; Manufacturing Industry; Food and Beverage Industry; Kenya; Nairobi; Africa;

Citation:

Casadesus-Masanell, Ramon, and Pippa Tubman Armerding. "Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market." Harvard Business School Case 720-390, September 2019. (Revised May 2020.) View Details

Cite View Details Educators Purchase

This case discusses the Kenyan government’s decision to increase excise taxes on wines in 2007. The tax increase would cause an average increase in price of 367% on Keroche’s fortified wines. Meanwhile, Keroche’s competitor EABL had effectively lobbied the government for its Senator beer to receive a zero-tax rating. Since Keroche’s wines targeted low-income consumers, Tabitha Karanja knew they would no longer be able to buy its products after the price hike. To make matters worse, Keroche was in the middle of building a brewery, with plans to enter the beer business in 2008. Now Tabitha Karanja had to decide how to react to this tax increase. One option was to lobby the government for a repeal of the tax increase (a long and costly process). Another was to abandon the wine business altogether, either in favor of the vodka Keroche already produced or another alcoholic drink.

Faculty & Research

Patagonia (B)

Abstract

Citation:

About the Authors

More from these Authors