SKE-115
JULY 16, 2008
T E AC H I N G N O T E
Butterflies of Costa Rica
Synopsis
In July 2007 Joris Brinckerhoff, founder and owner of Costa Rica Entomological Supplies
(CRES), must decide whether to accept an offer from RBA, a publications firm in Barcelona, Spain, to
sell mounted butterflies or “deadstock” as part of RBA’s “collectibles” program for schoolchildren.
Joris had always avoided the deadstock business which he considered to be low margin and unstable.
The business proposed by RBA would also require additional investment and increased overhead.
Nevertheless, he thought that the RBA offer might be attractive to CRES and its many suppliers in
rural areas throughout the country. Currently, the oversupply of butterfly pupae was adversely
affecting not only his business, but also the livelihoods of dozens of breeders, many of whom had
been low-income rural families, endangering the social gains that had been made over the past years.
Learning Objectives
Knowledge. This case enables students to learn about the butterfly industry and the
opportunity that it represents for low-income rural families. The solution of the case requires a basic
knowledge of industry analysis and marketing arithmetic.
Skills. Students will develop analytic skills in solving the case. They must draw upon case
data to evaluate the RBA alternative.
Attitudes. The case should reinforce positive attitudes toward seeking business
opportunities at the base of the pyramid, and for seeing low-income rural families not simply as
consumers but as essential links in the value chain.
Key Words
Social enterprise, agribusiness, butterfly industry
, SKE-115 Teaching Note – Butterflies of Costa Rica
Teaching Plan
The class discussion may be divided into six blocks, as shown below. The board plan is
shown in Exhibit TN-1.
I. How did Joris Brinckerhoff become one of the world´s major exporters of butterfly pupae?
(15 min.)
II. Why is Joris now considering the deadstock option? (10 min.)
III. Can the RBA offer benefit the breeders? (10 min.)
IV. Can CRES produce this many framed butterflies? (10 min.)
V. Can CRES make money doing this? What are the risks? (15 min.)
VI. What are your recommendations to Joris Brinckerhoff? (15 min.)
In the final five minutes, the professor can summarize the major points of the discussion and
provide a brief update (see last section)..
Analysis
1. How did Joris Brinckerhoff become one of the world´s major exporters of butterfly pupae?
The purpose of this opening discussion is to understand the CRES business model and
success factors, and to identify Joris´ objectives as an entrepreneur, because both are important in
deciding whether to accept the offer from the Barcelona publishing firm. To acquaint students with
the pupae export operation and with the Costa Rica environment, a 6-minute video clip from RAI, the
Italian television network, may be used or, as an alternative, slides may be shown.
The initial success in market entry was due to Joris´ persistence in overcoming the
administrative barriers to exporting live species from Costa Rica. The instructor should make certain
that the regulatory environment, where it cost as much to export a butterfly pupa as an ocelot, and
that Joris´ creativity finding solutions, is fully appreciated. On the demand side, there was a growing
interest in the environment at the time of CRES´ founding, and Costa Rica was becoming known as
an ecological tourist destination. The result was a growth in the number of exhibitors in Europe and
North America (though the industry data is scant) and a Costa Rica “brand” advantage.
As CRES develops, it is able to respond to the exhibitors´ interest in a wide variety of species
due to its expanding network of suppliers, most of whom were low-income farmers or rural laborers
whose lives have been changed (often dramatically) by this new source of income. Thus, the
company is able to achieve sustainable advantage by creating a supply chain that boosts nearly one
2
JULY 16, 2008
T E AC H I N G N O T E
Butterflies of Costa Rica
Synopsis
In July 2007 Joris Brinckerhoff, founder and owner of Costa Rica Entomological Supplies
(CRES), must decide whether to accept an offer from RBA, a publications firm in Barcelona, Spain, to
sell mounted butterflies or “deadstock” as part of RBA’s “collectibles” program for schoolchildren.
Joris had always avoided the deadstock business which he considered to be low margin and unstable.
The business proposed by RBA would also require additional investment and increased overhead.
Nevertheless, he thought that the RBA offer might be attractive to CRES and its many suppliers in
rural areas throughout the country. Currently, the oversupply of butterfly pupae was adversely
affecting not only his business, but also the livelihoods of dozens of breeders, many of whom had
been low-income rural families, endangering the social gains that had been made over the past years.
Learning Objectives
Knowledge. This case enables students to learn about the butterfly industry and the
opportunity that it represents for low-income rural families. The solution of the case requires a basic
knowledge of industry analysis and marketing arithmetic.
Skills. Students will develop analytic skills in solving the case. They must draw upon case
data to evaluate the RBA alternative.
Attitudes. The case should reinforce positive attitudes toward seeking business
opportunities at the base of the pyramid, and for seeing low-income rural families not simply as
consumers but as essential links in the value chain.
Key Words
Social enterprise, agribusiness, butterfly industry
, SKE-115 Teaching Note – Butterflies of Costa Rica
Teaching Plan
The class discussion may be divided into six blocks, as shown below. The board plan is
shown in Exhibit TN-1.
I. How did Joris Brinckerhoff become one of the world´s major exporters of butterfly pupae?
(15 min.)
II. Why is Joris now considering the deadstock option? (10 min.)
III. Can the RBA offer benefit the breeders? (10 min.)
IV. Can CRES produce this many framed butterflies? (10 min.)
V. Can CRES make money doing this? What are the risks? (15 min.)
VI. What are your recommendations to Joris Brinckerhoff? (15 min.)
In the final five minutes, the professor can summarize the major points of the discussion and
provide a brief update (see last section)..
Analysis
1. How did Joris Brinckerhoff become one of the world´s major exporters of butterfly pupae?
The purpose of this opening discussion is to understand the CRES business model and
success factors, and to identify Joris´ objectives as an entrepreneur, because both are important in
deciding whether to accept the offer from the Barcelona publishing firm. To acquaint students with
the pupae export operation and with the Costa Rica environment, a 6-minute video clip from RAI, the
Italian television network, may be used or, as an alternative, slides may be shown.
The initial success in market entry was due to Joris´ persistence in overcoming the
administrative barriers to exporting live species from Costa Rica. The instructor should make certain
that the regulatory environment, where it cost as much to export a butterfly pupa as an ocelot, and
that Joris´ creativity finding solutions, is fully appreciated. On the demand side, there was a growing
interest in the environment at the time of CRES´ founding, and Costa Rica was becoming known as
an ecological tourist destination. The result was a growth in the number of exhibitors in Europe and
North America (though the industry data is scant) and a Costa Rica “brand” advantage.
As CRES develops, it is able to respond to the exhibitors´ interest in a wide variety of species
due to its expanding network of suppliers, most of whom were low-income farmers or rural laborers
whose lives have been changed (often dramatically) by this new source of income. Thus, the
company is able to achieve sustainable advantage by creating a supply chain that boosts nearly one
2
