Blog Post 9

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Blog post 9:

Develop a detailed business model canvas for one of the following social enterprises: One Acre Fund, Acumen Fund, or Envirofit International. Integrate insights from at least five different valid sources for your chosen social enterprise and provide those citations in your blog.

I chose to focus on Envirofit

Key Partners:

  • “We work with governments, businesses, and NGOs to making smarter cooking accessible to more people. “
  • “We partner with last mile entrepreneurs, local businesses, and international distributors to scale access to clean cooking technology in both urban and rural markets.”
  • Johns Hopkins School of Public Health
  • President of Honduras & government
    • establishment of a clean cookstove industry
  • Subcontract all production to China
  • Shell Foundation and Bohemian Foundation
    • Funding and business support for R&D
  • Global Alliance for Clean Cookstoves
    • raise awareness on household air pollution
  • MFIs
  • Amazon

Key Activities:

  • “Our engineers work in our world-renowned cookstove lab side-by-side with our research team to design stoves that meet the cooking requirements of our customers across the globe.”
  • “Each stove goes through rigorous consumer testing, where we focus, group test, and survey over 2,000 people in order to find and fix problems before the stoves reach our customers.”
  • “To manufacture at scale, materials and products are inspected throughout the production and shipping process to ensure each product meets our stringent quality standards.”
  • “We provide training and support to encourage clean cookstove awareness and adoption.”
  • “We call customers to monitor and evaluate products in use and collect information on cooking habits. “
  • “we empower women across the global cookstove value chain.”
  • Infomercials and demonstrations educate people about the product and its importance

Key Resources:

  • Access to partnerships
    • Grants
  • Management and business knowledge

Value Proposition:

  • Better for environment
    • “Cook faster while reducing fuel use, smoke, and toxic emissions.”
  • Double fuel efficiency
    • “We design high-quality, low-cost cooking solutions that save money and cook faster“
  • Healthier for women and children
  • Generates more jobs

Customer Relationships:

  • “Through our customer care center, we provide training and support to encourage clean cookstove awareness and adoption.”
  • They claim to highly value customer feedback in order to help drive their product innovation.
  • Make the users and the buyers feel the pain in order to get them to buy the product

Channels:

  • They have three different channels in which they sell their product:
    • SMAAARTTM Businesses
      • We work with financing organizations, small businesses, small holder farmers, and women’s groups to develop sustainable local cookstove businesses.
    • SMAAARTTM Scale
      • We advise and custom build large-scale sustainable cookstove programs that make clean cookstoves adoptable, affordable, and accessible.
    • SMAAARTTM Response
      • We provide rapid production and supply of cookstoves for conflict, emergency, and relief situations anywhere around the globe.

Customer Segments:

  • Men
  • Women and children
  • People that earn $2-$7 per day
  • Low income people through MFIs

Cost Structure:

  • “Envirofit applies a Business-to-Business sales model. It sells cookstoves to various distributors, including local private companies, non-profit organizations and government institutions. These retailers then use their respective distribution and sales networks to reach the customers. Envirofit trains its retail partners how to sell its products and how to use the cookstoves properly.”
  • 0% tax rate
  • Sell 5 million cookstoves
    • Range in different prices ($20-150 USD) depending on the add ons and model you want
  • $20 million annual net sales
  • 400,000 units sold between 2009-2014
  • You can “purchase carbon credits” online. One stove is 30 credits

Revenue Streams:

  • Selling cookstoves
  • Stove design and development consulting services
  • Selling carbon credits

Sources:

  1. https://envirofit.org/
  2. https://sites.duke.edu/iealexgottwald/files/2017/01/Envirofit-Case-Study.pdf
  3. https://www.businesscalltoaction.org/sites/default/files/resources/BCtA_CaseStudy_Envirofit_Web.pdf
  4. https://issuu.com/stoveplusgeres/docs/envirofit_india_case_study_summary
  5. https://sites.duke.edu/iejuddhoward/files/2017/01/envirofit.pdf

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