Natura and the Development of a Sustainable Supply Chain in the Amazon Region

Summary

Natura, the largest manufacturer of cosmetics in Latin America and the leader in Brazil, has sought to set itself apart from its main competitors — large multinationals — by developing cosmetics based on ingredients derived from Brazil’s biodiversity. This case study refers to a dilemma about the possibility of generating, or not generating, sustainable competitive advantages by exploring a business model that goes beyond the “quadruple bottom line” — that is, the balance between financial, environmental, social and human objectives. Following this guideline, Natura, through interaction with rural communities in the Amazon, seeks to develop value chains that are sustainable and generate superior returns for the company. As such, the Natura case study helps us to understand why and how companies can include the quadruple bottom line in their competition strategy and under which conditions such a competitive strategy can generate sustained competitive advantages over the long run. The case study can be used in courses on competitive and corporate strategy, as well as those aimed at understanding social businesses and emerging markets.

Case study developed by Prof. Dirk Michael Boehe, Prof. Leandro Simões Pongeluppe and Prof. Sérgio Giovanetti Lazzarini at Insper, São Paulo. This case study is solely for the purpose of classroom discussion and does not propose to render an opinion on managerial effectiveness or ineffectiveness, or to serve as a primary source of data. Copyright © 2013 Insper Institute of Education and Research. A version in Portuguese and English of this case study is part of Insper’s case study collection. Insper, São Paulo has supplied written consent for publication by Palgrave Macmillan.