Novozymes: Cracking the Emerging Markets Code

Case Solution

Krishna G. Palepu, Karol Misztal
Harvard Business School ()

In 2011, the management of Novozymes, the leading manufacturer of industrial enzymes, reflected the viability of its positioning in the rapidly growing but increasingly competitive Chinese market. Novozymes, a pioneer in technological innovation, had strong representation in China’s premium enzyme markets, but felt pressure from low-cost local competitors in standardized volume-driven segments. How should Novozymes behave towards local competitors? Due to competition for technological innovations only in high-margin industries? Or through your own subsidiary with a new low-cost business model for standardized verticals?

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