Envirofit International Business Model

 

Envirofit International Business Model Canvas

Key Partners:

Envirofit has a variety of partners including government agencies such as the Overseas Private Investment Corporation (OPIC) of America and UKAid in addition to international organizations like the UN and World Economic Forum. These organizations provide economic support, PR, and even advise Envirofit on a variety of issues including assisting in finding grants. Meanwhile Shell’s foundation also provides funding and PR to Envirofit. Organizations such as the Clean Cooking Alliance and the Himalayan Stove Project have been assisting in distribution and PR channels as well.

 

Cost Structure:

Envirofit markets to base of the pyramid customers such as those in India making between $2 and $7 as well as other low income households in developing countries. They pay to manufacture the stoves, distribute them, advertise the company. They also pay for research, facilities, and staff in the various countries they are active in.

Revenue Streams:

There are several different methods by which Envirofit generates revenue. They accept donations and also offer a “carbon credit” program where both individuals and companies are able to donate via this program that allows lower income families to subsidize their purchase of Envirofit’s products. The sale of these stoves generates revenue. Envirofit also offers a service known as SmartGas where users pay by the amount of gas they use and have the tanks and gas delivered to their homes.

Channels:

Envirofit mostly sells to retailers within countries, and allows anyone to apply to become a distributor. In addition, its governmental and community based partners serve as distributors and increase awareness in the various countries it operates in. It has its own services and employees in various regions to help operate SmartGas in addition to other aspects of their business.

Key resources:

Envirofit’s resources are vast. It has an extremely large network of partners including many government agencies and corporate partnerships. It also includes its human capital in the form of its employees. They also own several patents for their products. In addition, their scientists and engineers are constantly researching and developing their product as well which has great value.

 

Key Activities:

Research and Development: Envirofit International has a division of researchers and engineers that work together as a research and development department to continually improve upon the products that the organization distributes. This team develops different types of cooking stoves that suit different customer segments.

 

Impact Monitoring: Envirofit International follows up with its customers to ensure that each stove that they sell is creating a positive impact and that they are satisfied with the product they have received. This division feeds into the research and development segment of the organization, as the feedback that the company receives from customers can be used to refine the products that they sell and can be used to research and develop new avenues of products.

 

Design for Adoption: Before the stoves are produced on a large scale to be distributed to customers, Envirofit International tests each new stove design where they “focus, group test, and survey over 2,000 people”. This activity is used to ensure that the products that they produce are ideal for the customers that they are trying to serve.

 

Production for Scale: Since Envirofit International makes products that are sold globally, in Africa, Latin America, and Asia, it is extremely important that the production process is closely inspected. Each stage of production includes steps that are taken to check the quality of the materials used.

 

Customer Care: The Customer Care portion of Envirofit International serves as a means of providing the customer base with a source of educating themselves on how to use clean cookstoves, as well as serving as a branch that can be a contact point for customer concerns and questions.

 

Extensive Distribution: Envirofit International aims to be able to reach the most amount of customers via partnering with many different businesses that are both large scale and local to ensure that they can distribute their products in both rural and urban environments. They partner with last mile entrepreneurs. According to Business Insider, the Last Mile Problem results from the inefficiencies that make delivery to the doorstep very difficult. Partnering with enterprises that specialize in this area mean that they can take steps to ensure a more effective distribution system.

Value Propositions:

The value that Envirofit International proposes to its customers is that with purchasing an Envirofit Cookstove, they will reduce the amount of fuel required to prepare a week’s worth of meals, and at the same time health risks such as asthma caused from too much smoke intake will also be reduced. Essentially, the value to the customer is that over time, they will reduce the amount of money and other resources spent on fuel and on medical costs that come with dealing with the adverse effects of cooking over an open flame. According to Food Safety News, there are a very large amount of health risks associated with open flame and hearth cooking in homes, especially in homes with young children. The smoke and other particles produced from burning the fuel can cause an array of diseases such as asthma and even life threatening conditions such as pneumonia.

 

Customer Relationship:

Envirofit does a lot to maintain its relationship with its customers. Some of these strategies include creating a center that is aimed at educating the customer base on the problem of efficient cookstoves and on how to properly operate their products if the customer base has any issues. The firm also strengthens its relationship with its customers by creating and developing products that are affordable and improve the quality of life of the customer base, promising to be more energy efficient and reduce the health risks associated with cooking over open flames.

 

Customer Segments:

East Africa: Envirofit claims to be the leading cooking stove distributor in the East African region. This region includes nations such as Rwanda, Zambia, Uganda, Tanzania, and Mozambique. The organization aims to market their products towards both family professional uses in order to increase the efficiency with which the region uses energy to prepare meals.

 

West Africa: Envirofit serves nations in the Western region of Africa, including nations such as Nigeria, Liberia, Ghana, and Gambia. The organization aims to distribute their products to customers who wish to increase the efficiency with which they prepare meals as well as light their homes.

 

Latin America: In the western hemisphere, Envirofit distributes their products to Honduras, Mexico, and several countries in South America.

 

Sources

  1. Dolan, Shelagh. “The Challenges of Last Mile Logistics & Delivery Technology Solutions.” Business Insider, Business Insider, 10 May 2018, www.businessinsider.com/last-mile-delivery-shipping-explained.
  2. “CSR Programs | Off Grid Appliances | Clean Cooking Stoves.” Envirofit, envirofit.org/our-story/#our-story.
  3. “Harmful Hearths: Open-Fire Cooking Threatens Lives.” Food Safety News, 31 Jan. 2011, www.foodsafetynews.com/2011/01/harmful-hearths-open-fire-cooking-threatens-lives/.
  4. Narapareddy, Vijaya. “Envirofit International: Cracking the BoP Market Blue Ocean Strategy Case Solution.” Blue Ocean University, Blue Ocean University, 5 Dec. 2018, blueoceanuniversity.com/frontpage/blueoceancase/7785-envirofit-bop.
  5. Bauer, T. (2011). Enabling Market-Driven Technology (Innovations Case Narrative: Envirofit International). innovations, 6(3), 93-102.

Takeaways from Guy Kawasaki, Business Canvas

Four takeaways from Guy Kawasaki’s talk:

  1. Focus on creating meaning and not on creating profit. This excerpt from Kawasaki’s speech resonates with me and my project goal because meaning and purpose are deeply ingrained in the overall objectives of Project Plastikan. Our project is still in its infancy stages, and to hear a business expert preach to not worry about making a profit at first is a relief on the rest of the objectives that our team must accomplish. Keeping our eyes set on creating meaning will ensure that we will create the maximum amount of social and environmental impact in Malabon, and with hope, globally.
  2. Don’t listen to the bozos. I believe that an important aspect of life and success in general stems from an ability to understand what advice is worth following. This can come from a better understanding of both those who give you advice and of yourself and your weaknesses. If you do not have a good grasp on your own shortcomings and weaknesses, then any advice given to you will either not seem useful at all, or any advice will seem useful even if it may not be very helpful.
  3. Persistence and being confident in yourself. While this was not a direct lesson of his speech, Kawasaki demonstrated this personally when the moderators of the event were trying to get him off stage and to finish his talk. He showed this with lines like “what are they going to do? Not invite me back next year?” and other similar statements. He finished what he started. He was confident in himself and persistent enough to wish to finish out his speech, and his persistence paid off, because he was able to go over the time limit and finish his speech. This is relevant to Project Plastikan because our venture involves dealing with multiple organizations that can be described as lethargic, and require persistence to get the most from them. Additionally, confidence in ourselves and that what we are trying to accomplish is meaningful will prove advantageous because e will be able to project this confidence and gain the attention and favor of individuals that can help our venture grow and flourish.
  4. Invest in people. I firmly believe that the success of projects depends most on the individuals who work for the project, and any other factor takes a backseat. It does not matter how many advantages the project may have, if the people behind the venture are not willing to put in the work to see the product succeed, then the project will eventually fall flat of what it could be. People are the greatest asset of a venture, and directly determine whether a project can maintain its meaning and impact while still succeeding and growing.

 

Business Model Canvas: (in partnership with Devin)

 

Key Partners: UPD, Paradise Village Women’s Co-op, Vice Mayor’s Office, Lehigh University

Cost Structure: Developing and transporting machines, Powering machines, Rent for space being utilized

Revenue Streams: Selling the products produced by the machines

Channels: Local markets or to companies depending on the type of product produced

Key resources: human resources (women of co-op), machines

 

Key Activities: Collecting Plastic waste, operating machines, maintaining machines, selling products from machine process, designing molds for new products

Value Propositions: The products produced from the machines are significantly more valuable than the inputs, the value in the products also borrows from the fact that buying the products is reducing plastic waste and at the same time supporting impoverished women

Customer Relationship: Since the women in the co-op who will vend these products will be a part of the community, the venture will have a very close relationship with its customers. The customers can feel good that they are supporting the reduction of plastic waste and the empowerment of the women in the co-op.

Customer Segments: Customer segments include potential customers who wish to make a difference in the world by using their purchasing power to reduce the plastic waste in the philippines. Additionally, another segment is those who wish to support the innovation and creativity of the women in the co-op. Lastly, the customer base will remain in the local community of Malabon, Manila, but after future success may expand to other provinces of the Philippines and eventually to a more global market.