Novo Nordisk’s sustainable business approach in China cited by Michael Porter
Novo Nordisk's Triple Bottom Line business approach has caught the attention of world-renowned business strategist, Michael Porter of Harvard Business School. Last year, Novo Nordisk published ‘The Blueprint for Change: Changing diabetes in China’ on how strengthening of the healthcare system and establishing local stakeholder relations are key elements of Novo Nordisk's long-term business strategy for China.
Michael Porter contacted Novo Nordisk for more details on the company’s business approach to China. After researching Novo Nordisk’s Triple Bottom Line philosophy and its application in China, Porter determined that Novo Nordisk’s sustainable business model represents a classic example of what he describes as a ‘shared value’ approach to business sustainability.
In March 2012, Michael Porter and his company, the Foundation Strategy Group, released the report on shared value ‘Competing by Saving Lives: How Pharmaceutical and Medical Device Companies Create Shared Value in Global Health’ that includes Novo Nordisk’s entry into the Chinese marketplace as an industry case study:
“Novo Nordisk was one of the first western firms to enter the Chinese insulin market in 1994. By 2010, the company had grown its market share to 63 percent (about 13 percentage points higher than its global share) in what has become a $1 billion market. It has saved an estimated 140,000 life years in the process. Early engagement across all three levels of shared value has contributed to this success.”
Mette Kruse Danielsen
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