NOVOZYMES CRACKING THE EMERGING MARKETS Harvard Case Solution & Analysis

NOVOZYMES CRACKING THE EMERGING MARKETS Case Solution

INTRODUCTION:

The purpose of this case study is to analyze the business strategies of the management ofthe Novozymes Company and the effectiveness and efficiency of the business culture and operations of the organization in China. The analysis of the organization will involve a complete illustration of the environment, competitors, strategy and the market trends of the region. This will provide an effective overview to the management of the organization to realize the strengths, shortcomings, opportunities and threats of the business in order to sustain the market share and growth of the company in all the segments of the industry where it operates.

OVERVIEW:

The Novozymes operates in two segments of the market and they are the high-end premium markets and the low-end commoditized markets of the country. The high-end market constituted of the premium products like detergents and food and the low-end commoditized market consisted of the textiles and brewing industries. The management of the organization has been successful in capturing a significant market share in the premium sector of the industry however; the securing the business interests of the company in the commoditized sector of the industry has been a challenge for the management of the company. This is due to several reasons that will be analyzed comprehensively in the analysis below.
The management of the organization faces several questions regarding the future strategies, priorities and focus of the company in face of such grave barriers like the declining market share of the company in the low-end sector of the industry. The most critical questions for the management of the company are should the organization compete in only in high margin segment of the company on the basis of innovation or should it also launch a low-end offering subsidiary of the company to compete effectively.

PROBLEM STATEMENT:

The primary problem for the management of the company is to sustain the market share of the organization especially in the low-end segment of the industry and develop a competitive business strategy for the company to compete with the rivals in the industry effectively. The two questions in doing so for the management of the organization are as follows.
• How should Novozymes relate to local competitors? By competing on technological innovation only in high-margin verticals?

• Should Novozymes create a separate subsidiary with a new low-cost business model for commoditized verticals?

ANALYSIS:

The analysis of the organization will include a comprehensive overview of the environment, competitive rivalry and the generic strategy of the management of the company. This analysis of the company will assist in discovering the root cause of the issues of the company and thus enable the management of the company to adopt feasible policies and strategies to counter them(Dälken, 2014)..................

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