Tropdicorp: One bug's enemy is another man's friend

• Main Authors: ZERRILLO, Philip C., HYLDEN, George
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: New product line; product launch; decision-making; marketing distribution and channels; market entry; regulation; business model; analysis; assessment; innovation; pesticides; organic pesticides; agriculture; Vietnam; Agribusiness; Business Administration, Management, and Operations; Marketing; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/108; https://cmp.smu.edu.sg/case/3241
• Institution: Singapore Management University

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. The case furnishes scientific, business and contextual information that is needed for decision-making purposes and to inform a business plan that is to be presented to Tropdicorp’ s board of directors. Through discussion of this case study, students will be able to analyse a new business line and assess the viability of a business model. They may also gain a deeper understanding of what the internal and external implications of a new business line are as it relates to various business functions. This case can be used in a marketing course for undergraduates, postgraduates and executives.