Morocco's Novatis Group: diaper manufacturing in a developing country

Subject area: This case tackles the diaper industry in a developing country and can be applied to three different undergraduate or graduate level courses, including Marketing Management, Strategic Management, and Operations and Supply Chain Management. The case describes the industry, the manufacturing process, along with detailed information about Novatis Group's business and functions and the overall improving economic environment in Morocco. Study level/applicability: The Novatis Group case has several objectives that can be applied to three different courses within undergraduate and graduate studies including Marketing Management, Strategic Management, and Operations and Supply Chain Management. Case overview: The case focuses on Novatis Group, a diaper manufacturing company located in Morocco which competes against multinational companies (MNCs) such as Procter and Gamble and Kimberly Clark in order to satisfy the rising diaper needs of the country. Morocco is a developing country that is strengthening its manufacturing industries. The rising economic conditions have given way to a growing middle class and an increased demand for disposable baby diapers. Novatis uses two distribution channels for the diapers: the multi-tiered distribution channel and the streamlined (straight to retailer) channel. Novatis Group is producing diapers at full capacity; still demand has exceeded supply. Expected learning outcomes: Students will understand the business processes in a developing country and how a small, local company can compete against large MNCs. Supplementary materials: Teaching notes are available, please consult your Librarian to access.