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Novozymes: Establishing the Cellulosic Ethanol Value Chain Case Solution & Answer

As the world’s largest producer of industrial enzymes, Novozymes has invested for many years to bio-engineering enzymes that can break down cellulose into fermentable sugars. In 2010, the company has launched what he believed was a revolutionary product for the conversion of crop residues of corn into fermentable sugars for the production of fuels. But the problem was that the company controls a part of the value chain. To succeed in this emerging sector, if the company is set to an existing ecosystem? If so, how much effort would be required coordination to integrate many parts, including equipment suppliers and yeast? Or Novozymes has to build its own ecosystem? And if so, how to maintain control at all levels of the value chain? The case is designed to expose students to the challenges of developing strategies for participation in the value chain in an environment where they can also learn about industrial biotechnology including advanced methods of directed evolution.
by
Willy Shih,
Chai Sen
Source: Harvard Business School
14 pages.
Publication Date: June 1, 2013. Prod #: 614001-PDF-ENG
Novozymes: creating the solution of the case of the value chain of cellulosic ethanol

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