Sustainability as Strategic Differentiator: The Promise and the Problems of Using Chicle vs. Petro-Chemicals in Chewing Gum

Abstract

Chewing gum as a commercial product was traditionally based on chicle, mainly harvested by indigenous people from trees in the tropical forest of southeastern Mexico. Chicle gum base has now been replaced by a petro-chemical gum base by the major manufacturers. However, several smaller companies are again attempting to market chewing gum using a chicle gum base. The question raised here is, will the differentiation provided by chicle gum—being natural, organic, and “plastic-free”—provide sufficient differentiation for meaningful competition against the less expensive brands using a petro-chemical gum base? This case provides an interesting application of Michael Porter’s strategy model in which differentiation and value are competing strategies.