This week we were assigned to created a detailed business model canvas of one of the provided organizations. Together, Neena Shah and I worked on creating a model for Envirofit International.
Key Partners: Envirofit partners with last mile entrepreneurs, local businesses, and international distributors to scale access to clean cooking technology in both urban and rural markets. they are able to reach a wider variety of people by working closely with and often financing organizations, small businesses, small holder farmers, and women’s groups. Partners are really key to Envirofit as their sustainability comes from their relationships with distributors, dealers, and community or government based organizations.
Key Activities: Envirofit provides a sustainable, non-damaging method of cooking that inspired better and healthier living. One of the key aspects of their products is their ability to reduce fuel use, toxic emissions, and smoke. Also, Envirofit launched a program called “Envirofit Cookstove Program for Africa” where the goal of the program is to 1) create a platform for people to own, use, and benefit from the stoves, 2) reduce cost of expenditure on charcoal, 3) reduce tonnage of charcoal used in selected districts, 4) reduce indoor air pollution, and 5) reduce emissions from use of charcoal.
Key Resources: Envirofit’s key resources include 1) a deep network of community and government partners and dealers and 2) a state of the art combustion technology. They also have partners with some world-renowned scientists and engineers to have created a product that is so efficient and powerful at such a low cost.
Cost Structure: Envirofit doesn’t necessarily post their costs online, but the most important costs come from the donations and “Carbon Credits” that outside sources and partners have the ability to donate and send into the company allowing them to continue their innovative research and product creation. Their cost structure also includes the ability for people to either buy products or become dealers or distributors of the Envirofit products. Costs include the manufacturing fo the products, the facilities, the distribution, advertising, research, etc.
Value Proposition: Envirofit was created with the goal of providing high-quality cookstoves that catered to the needs of individuals living in underdeveloped and third world countries. Envirofit products give people a way to cook their food without using exorbitant amounts of electricity and reducing the amount of smoke and toxic emissions. One of the major values of the Envirofit products, like the cookstove, is that their product uses liquified petroleum gas (LPG) which only costs $0.56 per day compared to the $1.00 per day cost of using charcoal gas.
Customer Relationship: Envirofit products help their customers cook smarter, save energy and money, and reduce their carbon footprint. It improves the daily lives of the customers because they don’t have to clean up the messes of the stoves either and thus their foods don’t have as much dirt and can be healthier and cleaner. This helps the overall health of the customer because of the reduction in charcoal emissions and sanitation of the cooking area.
Channels: Envirofit allows anybody to apply to become a dealer of their product which expands the distribution of the product. But is also allows government or community-based organizations to become a partner with Envirofit to even further expand their awareness and distribution of the product.
Customer Segments: The most important customer of this product are the women who are cooking for their families in developing countries. Their products target families who lack access to electricity and clean cooking solutions. However, another customer that they cater to are the people who desire to help countries and people who lack the necessary resources.
Revenue Stream: A testimony by a customer states that these products save her and her family about $6.50 per week. What makes this company so interesting and affordable for these people in developing countries is it gives people in countries such as the United States the ability to buy something known as “Envirofit Carbon Credits” which allows the money these people are donating to go towards a family in need of a stove. Envirofit’s website states that $30 helps support one stove. Their revenue is coming from people buying these carbon credits but also from the little money these families are spending on the stoves.