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Product cover image for Pastéis de Belém: Turning a Secret Recipe into a Strategic Asset (Portuguese version)

Pastéis de Belém: Turning a Secret Recipe into a Strategic Asset (Portuguese version)

Pedro de Faria, Wolfgang Sofka

Product #:W29972
Supplier:Ivey
Discipline:General Management, Strategy
Setting:Portugal, 2021
Details:Case (PDF) • 9 pages • 2022-07-08

Subjects:

Competitive advantageIntellectual propertyPatentsCompetitive strategyBusiness law and ethicsCovidHealth and wellnessStrategyManagement

Industries:

Goods, trade, and consumer services

Geography:

EuropePortugal
Your Price:$10.54

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The success of Antiga Confeitaria de Belém had been built around the uniqueness of its signature product. Many comparable custard cakes, known as pastéis de nata, were available, but the bakery had established its Pastel de Belém as a distinct product with the power to attract tourists from all over the world. The Pastel de Belém stood out because its recipe had been a well-kept secret for decades. The 2020 COVID-19 crisis propelled Antiga Confeitaria de Belém to try new ways of selling its product outside of its single shop location, and this experiment could trigger new business opportunities. Now, the strategic challenge for the bakery's chief executive officer was to assess whether the exclusive nature of the Pastel de Belém allowed for new business development.

Learning Objectives

The case raises a number of issues related to the role of knowledge in achieving competitive advantage and changes to this role. It can be used in undergraduate- and graduate-level courses that deal with the knowledge-based view of the firm, knowledge protection strategies, intellectual property, and business development.

This case explores how a firm’s unique knowledge, i.e., a cake recipe, can sustain a competitive strategy; its setting is representative for the vast majority of firms and start-ups—that is, it is outside of high-tech sectors and patenting. Working through the case and assignment questions will give students the opportunity to do the following:
  • Explain the mechanisms tying unique knowledge to a firm’s competitive advantage.
  • Analyze the advantages and disadvantages of various knowledge protection instruments.
  • Explain the circumstances under which knowledge protection strategies have downsides or become obsolete.
  • Explain how firms can reconsider their knowledge-based strategies for developing new business opportunities.
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Case Study: Pastéis de Belém: Turning a Secret Recipe into a Strategic Asset (Portuguese version) | Ivey Publishing