Managing Innovation at Nypro Inc. (A) Harvard Case Solution & Analysis

How would you go about making the NovaPlast decision?

The most optimistic way for coming close to the NovePlast decision is to consider the Nypro’s history and look into the future potential within the industry. Before the introduction of the NovaPlast, Nypro had positioned themselves as a very successful and profitable company. Since, the mission of the company has an important role to play in achieving success; therefore, Nypro’s some parts of the strategy were derived in relation with the company’s overall mission, which should not be ignored.

These similar roll-outs were also considered and most importantly that how they could achieve success within the Nypro’s Overall structure. The final considerations were based on Nypro’s strengths and weaknesses, which were compared with the possible opportunities and threats within the industry. In the light of strategic positioning, Nypro was quiet focused towards the large molding jobs. Since, the NovaPlast serves as a low volume diverse market and fast timed projects so the execution of the NovePlast can be counted as the market development approach. Keeping this factor in a special focus is really necessary because NovePlast may not follow the conventional procedures and there are immense chances that this technology will not support the innovation processes. While making a decision, another factor which needs to be kept in mind is that the Nypro has a habit of locating their plants near to their customers.

Accepting a fact that the conventional innovation procedures may not be that helpful in predicting the implementation feasibility for NovaPlast; therefore, it is really important to learn some good and effective points from Nypro’s professional experience in terms of accepting the new and updated manufacturing resource planning tool, bi-component modeling and clean room production plant design. These victorious improvements extended all the way through an organic procedure of other plants seeing their worth and adopting the new procedures. It is imperative to note that the less successful of these was the one that were actually initiated by the management. Considering a fact that NovaPlast is being actually initiated by organization as well, Mr. Lankton needs to be exceptionally careful. Finally, the company’s other strengths can be considered apart from its innovation system. Nypro has an exceptional sales approach that is both affordable and effective, only escalation in cost by 30% over the 4 years, even with a 67% boost in sales revenue over the same tenure. Whatever alternative the company selects should be one that actually leverages this sales benefit and addresses the industry’s potential opportunities created by a demand for faster deliverance of products and the industry threat of quiet low barriers to entry.

Based on the critical evaluations, it can be recommended that Nypro must shape out a special plant that actually uses NovaPlast. The location of the plant should be near to the area where there should be the greatest demand for low volume trade and the company should also meet elevated pre-orders for NovaPlast products. This choice is mostly based on the actuality that NovaPlast is a result of market development approach, and it should not be merged with or operated like the organization’s already successful large scale and potential molding market. The implementation of NovaPlast should be a consequence of Nypro’s internal market for advancement. The other two alternatives could divert plant managers from the company’s strategic focus and let down could be accepted by the general managers as that of the administration and the product, not actually theirs.


In this extremely competitive environment, businesses are moving towards opting new technology by focusing on long term growth perspectives. Nypro has a tremendous advantage in terms of Mr. Gordon who is a highly competitive person and always appreciates growth and innovation possibilities for the organization. The company is quiet aligned and is really focused towards in search of new heights. Moreover, before taking the final decision they must test the feasibility from different perspectives like testing it with customers, who are having a diverse cultural background, locations, need and wants. This pilot or testing phase can be initially done on a one single plant so that in case of a failure, this test might not result in massive loss for the company. In case of success, the circle of implementing this new innovation can be expanded to the remaining plants in order to maximize the overall benefits for the company. There is a supporting fact that Nypro has a tremendous internal market that has been extremely successful in implementing a new technology and reaching new heights every time. In addition, the company is found to be quiet aligned from financial perspectives and year to year they are increasing their profits.................................

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