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Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (B)

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

6 pages

November 2024

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Reference: IMD-7-2610

Picking up where Case A ends, Case B reveals that Grupo Inca decided to innovate internally and develop a new fabric from the rare black alpaca fiber. After nearly three years of effort, the Inoue brothers’ dream of creating a luxury collection from undyed black alpaca fiber became a reality. The collaboration between the Inoue brothers, Incalpaca TPX and Pacomarca research center led to the launch of the first Natural Black Alpaca Collection in Tokyo in 2015. Despite the success, the supply of black alpaca fiber remained limited, which prompted Grupo Inca to broaden its black alpaca program and launch a selective breeding initiative to increase the population of these animals. The number of black alpacas steadily grew, and in 2019, KUNA, Incalpaca TPX’s luxury clothing brand launched its own new black alpaca collection. The question for Grupo Inca now was whether it could develop a commercially viable yet sustainable long-term strategy that preserved Peru’s rich alpaca heritage and continued to innovate. Should it pursue commercialization, continue a niche premium product strategy or partner in a wider coalition with NGOs and government? Instructors can use Case B to teach about future readiness or as a reveal for the dilemma in case A. Case B touches upon Grupo Inca’s decision, its efforts to bring black alpaca fiber to market and the consequences this has on the rest of the organization and the alpaca industry.

Learning Objective

Explain and assess key terms and concepts in sustainability and social innovation.
Evaluate a social innovation solution recognizing its costs and benefits.
Recognize key factors allowing a company to be future ready and evaluate strategies that enhance a company’s ability to thrive during uncertainty.

Keywords

Social Innovation, Business Ethics, Sustainability, Kuna (brand), Alpaca, Biodiversity, Environmental Protection, Sustainable Fashion, Indigenous Community, Cultural Preservation, Poverty, Reduced Inequalities, Responsible Consumption, Responsible Production, Life on Land

Settings

Latin America, Peru
Grupo Inca, Manufacturing, Textile
2022-2024

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

2024 EFMD Case Writing Competition Award - Responsible Business Category

This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

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