In the case study, Roger Caracappa must decide whether to accept a cost-saving, innovative proposal from a potential French supplier that could displace the otherwise satisfactory, long-time incumbent supplier. In other words, Caracappa had to assess a recent proposal he had received from a small French enterprise that had received a patent for packaging innovation. The innovation could either lead to substantial savings or lead to production, delivery, or quality problems.
James K. Sebenius
Harvard Business Review (912701-VID-ENG)
January 30, 2012
Case questions answered:
- What makes the cosmetic industry unique among all manufacturing sectors?
- What is the fundamental dilemma in this case?
- How does understanding open innovation inform the analysis of this case?
- What do you recommend as a course of action here (Pros/Cons of options 1,2 and 3)?
- How would you implement this decision?
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Case answers for Roger Caracappa: Package Deals for the Estee Lauder Companies
Elevator Pitch – Roger Caracappa: Package Deals for the Estee Lauder Companies
This case revolves around a proposal forwarded to Caracappa, who is the executive VP of Estee Lauder. At that time, Roger Caracappa had a big decision to make about making a package deal for the Estee Lauder companies with a new supplier and leaving an incumbent supplier. With many distribution outlets, Estee Lauder’s supply chain and packaging were very important to the company’s commitment to quality.
Weighing whether to implement or not the open or closed innovation is a crucial decision to make because it could directly impact the company’s position in the global market. Despite able to implement open innovation, one must consider its costs and feasibility when the environment demands high volume production.
What makes the cosmetic industry unique among all manufacturing sectors?
The cosmetic industry is subjected to numerous federal regulations that have been laid down to protect human health and the environment. There is extra emphasis laid on packaging innovation which directly reflects the quality of the product.
What is the fundamental dilemma in this case?
The fundamental dilemma, in this case, is assessing whether to opt for packaging innovation offered by a new firm considering the…