Newlight Technologies: Plastics for a carbon negative future
The Newlight Technologies case is set at the end of 2013. Newlight has been awarded the Innovation Prize for Biomaterial of the Year by nova-Institut GmbH at the Cologne International Conference on Industrial Biotechnology and Bio-based Plastics & Composites. The company has a small-scale pilot plant using enzyme catalysts to produce a bioplastic resin, PHA, which has a wide range of applications for products in the plastics industry. The pilot plant can produce enough resin to perform product trials for a number of end-users at the same time. The innovative process is the fruit of ten years’ research and the result promises to be one of the first biopolymers to be economically competitive with petro-chemical based products on price and performance. The case provides details of the global industry, giving scope and scale information for businesses along the value chain, including market segmentation and resin pricing.
In a business strategy course, the case is designed to demonstrate fundamental core concepts in strategy, including:
- Industry analysis
- Supply chain analysis and strategic focus (position in the supply chain, low cost/differentiation choices, market segmentation)
- Market entry modes and timing. In a business for sustainability/environment or CSR program, additional emphasis can be placed on environmental sustainability as an element of strategy. Initiating this discussion before analysis of the supply chain will help to give focus to the subsequent discussion.
Newlight Technologies, Biotechnology
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications