EE204: Business Management for
Electrical Engineers and Computer Scientists

The Innovator's Dilemma

Read

1. Introduction: Why Good Companies Fail to Thrive in Fast-Moving Industries (HBS course materials)
2. Godrej Chotukool: A Cooling Solution for Mass Markets (HBS course materials)
3. Edison Awards article

Case Summary

Godrej, a Fast Moving Commercial Goods (FMCG) company in India, historically known for its refrigerators in the Indian market, contemplated launching a new product for rural markets. Chotukool was an unconventional cooling solution targeted at the bottom of the pyramid (BOP) segment in India. More than 80 percent of the population in India does not own refrigerators and 50 percent of the population earns less than US$2 per day. The study tracks Godrej's journey of disruptive innovations from the conception of the idea to the marketing challenges faced by the company. It also focuses at length on how the organization plans to execute two parallel business models, one aimed at the consumers of traditional refrigerators while the other one simultaneously targets current non-consumers. The case focuses on the management challenge of innovating across the value chain in order to succeed at social innovations.

Discussion Questions

1. How does Chotukool development follow the principles of disruptive innovation?
2. What role does marketing play in this disruptive innovation?
3. Why is Godrej developing this product?
4. How would you describe the product development process? How long did it take? What are the barriers to adoption for this product? What segment of the population is the Chotukool targeting?
5. Christensen says that big companies like Godrej usually fail at these kinds of products. What are the weaknesses in the Godrej disruptive innovation model?
6. How will Godrej deal with competition for the Chotukool? How does Godrej measure success of this product? How would a start-up tackle the same problem?
7. As the CEO of Godrej & Boyce, what are your plans for this product?