Case Study

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

9 pages
November 2024
Reference: IMD-7-2609

Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction. The Inoue brothers, fashion designers committed to social impact, expressed an interest in creating a luxury collection using rare black alpaca fiber. This presents Grupo Inca with both an opportunity and a dilemma: Should it invest in developing this niche market despite uncertainties of both supply and demand, or collaborate with local government and NGOs to ensure sustainable practices, or maintain its current direction and do nothing? This compact case explores the intricacies of actions vs. impact, ethical responsibility and long-term strategic thinking. It provides a rich context for discussing the impact of business decisions on biodiversity and sustainability, the role of corporate values in guiding strategy and the potential for innovation in sustainability. Students will explore Grupo Inca’s role in the decline of black alpacas, assess the ethical implications of the company’s actions and develop strategic recommendations through scenario planning. The accompanying teaching note also covers methods to leverage AI tools to generate ideas and explore solutions that enhance students’ learning.

Learning Objective
  • Explain and assess key terms and concepts in sustainability.
  • Interpret the impact of a company’s actions, considering both positive and negative, as well as intended and unintended consequences.
  • Analyze a social problem from multiple perspectives, including long-term consequences and stakeholder impacts.
  • Develop strategic recommendations through scenario planning to address future uncertainties and complexities.
  • Synthesize AI-generated information with human insights for a comprehensive case analysis.
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
1965-2011
Type
Field Research
Copyright
© 2024
Available Languages
English
Related material
Teaching note
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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)
Center for Social Innovation
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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Not so black and white: Grupo Inca’s black alpaca dilemma (A)
By Vanina Farber Carolina Duran Silva Baris Silahcioglu Hugo ten Zijthoff and Shih-Han Huang
Case reference: IMD-7-2609 ©2024
Summary
Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regard...
Reference IMD-7-2609
Copyright ©2024
Copyright owner IMD Copyright
Organization Grupo Inca
Industry Manufacturing, Textile
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

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
Case reference: IMD-7-2610 ©2024
Summary
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.
Reference IMD-7-2610
Copyright ©2024
Copyright owner IMD Copyright
Organization Grupo Inca
Industry Manufacturing, Textile
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications