Novozymes: Cracking the Emerging Markets Code
Posted: 7 Jun 2012
Date Written: April 4, 2012
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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