HomeResearch & Knowledgeback to HomeSocial Innovationback to Research & KnowledgeNot so black and white: Grupo Inca’s black alpaca dilemma (A)back to Social Innovation

Case Study

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

9 pages

November 2024

Order this case study

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

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

2024 EFMD Case Writing Competition Award - Responsible Business Category

The Case Centre Awards and Competitions Winner 2025 - Outstanding Compact Case

Executive Programs

🔎 Learn

Explore 80+ Executive Programs

Choose from 80+ Executive Education programs, both on-campus and online led by an expert and diverse faculty.

Upcoming Events

📆 Register

Corporate governance experts at IMD For annual conference - IMD Business School

Experience IMD for yourself

Experience what IMD has to offer for you, your career and your future. Join an upcoming Masterclass or Information Session.

Keep reading

Article

Net ero - Political battles - How to survive

Business leaders must master the art of building strategies that take account of partisan divides over net-zero goals while progressing the interests of their company and society.

Geopolitics Strategy Sustainability

By Arturo Bris

in I by IMD

Report

Voluntary biodiversity credits: A guide for business

This guide aims to help businesses navigate the rapidly evolving voluntary biodiversity credit (VBC) markets and decide whether and how to engage in VBCs. It is intended for companies that want to help halt biodiversity loss or restore and regener...

Sustainability Strategy

By Adrian Dellecker, Julia Katharina Binder, Peter J. Stephenson and Luca Fumagalli

IMD white paper, 23 September 2025

Article

Bayer - Rethinking Sustainability - Shared Ownership

Rethinking sustainability at Bayer, Daniel Schneiders shows how shifting team ownership and decision-making drives lasting impact across the company.

Sustainability

By Julia Binder and Esther Salvi

in I by IMD

Article

Energy transition: how to surf the wave of change

Future-ready organizations that focus on the energy transition and accelerate along with it will reap the benefits.

Change Management Strategy Sustainability

By Julia Binder and Knut Haanaes

in I by IMD

Case Study

Green or greenwashing? A 95 million dollar sustainability paradox for Michelin and BNP Paribas

The Tropical Landscapes Finance Facility Sustainability Bond (TLFF I) was initially celebrated as a best-in-class example of sustainable finance. Issued in 2018, this $95 million financial instrument aimed to create a promising future: sustainable...

Sustainability Stakeholder Management Crisis Management Social Innovation

By Vanina Farber and Shih-Han Huang

Video

Lean and clean are perfect partners, says CEO of engineering giant

ABB CEO Morten Wierod on leaner cleaner strategy, electrification, automation, robotics, AI, digital transformation, sustainability, leadership.

Leadership Strategy Sustainability

By Jean-François Manzoni

in I by IMD

Podcast

Leaner, cleaner, faster, stronger: How ABB is reshaping an engineering icon for the future

ABB CEO Morten Wierod on leaner cleaner strategy, electrification, automation, robotics, AI, digital transformation, sustainability, leadership.

Innovation Leadership Sustainability

By Jean-François Manzoni

in I by IMD

Net ero - Political battles - How to survive

By Arturo Bris
in I by IMD

Summary

Business leaders must master the art of building strategies that take account of partisan divides over net-zero goals while progressing the interests of their company and society.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Geopolitics

Strategy

Sustainability

Browse all topics

Voluntary biodiversity credits: A guide for business

By Adrian Dellecker Julia Katharina Binder Peter J. Stephenson and Luca Fumagalli
IMD white paper, 23 September 2025

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Sustainability

Strategy

Browse all topics

Energy transition: how to surf the wave of change

By Julia Binder and Knut Haanaes
in I by IMD

Summary

Future-ready organizations that focus on the energy transition and accelerate along with it will reap the benefits.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Strategy

Sustainability

Browse all topics

Green or greenwashing? A 95 million dollar sustainability paradox for Michelin and BNP Paribas

By Vanina Farber and Shih-Han Huang
Case reference: IMD-7-2646 ©2025

Summary

Reference IMD-7-2646

Organization Michelin, BNP Paribas, ADM Capital, Barito Pacific

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Sustainability

Stakeholder Management

Crisis Management

Social Innovation

Browse all topics

Lean and clean are perfect partners, says CEO of engineering giant

By Jean-François Manzoni
in I by IMD

Summary

ABB CEO Morten Wierod on leaner cleaner strategy, electrification, automation, robotics, AI, digital transformation, sustainability, leadership.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Strategy

Sustainability

Browse all topics

Leaner, cleaner, faster, stronger: How ABB is reshaping an engineering icon for the future

By Jean-François Manzoni
in I by IMD

Summary

ABB CEO Morten Wierod on leaner cleaner strategy, electrification, automation, robotics, AI, digital transformation, sustainability, leadership.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Innovation

Leadership

Sustainability

Browse all topics