Product details

The case is set in September 2012 and deals with the circumstances surrounding Vietnam-based Tropdicorp’s proposed foray into the organic pesticides market. Outside of its core business of seed science, the company has developed initial expertise in breeding and deploying natural enemies as an organic pest control measure that complements existing biological, chemical and physical pesticides. Tropdicorp is now looking into how to commercialise the concept of natural enemies and its distinct feature of self-sustainability. Whilst the environmental and economic benefits of natural enemies as organic pest control to farmers and end-consumers has been firmly established, real profit opportunities for producers and distributors has yet to be created. Tropdicorp’s new line of business relies on a business model that requires, aside from strategic and regulatory reconsiderations, a redesign of its value chain and reorganising of its marketing and distribution channels. The challenges to its profitability model include overcoming coordination failure on how to maximise and split profit margins along the value chain.