Envirofit International Business Model Canvas:
Value Proposition: The main values which Envirofit International delivers to their customer are adoption, affordability, and access. They solve the customer problem of not being able to afford or have access to obtaining the assets necessary to service their own microenterprises, specifically those involving stove-top goods. They are able to cater to the locals’ set of needs by enabling them to gain access to greatly reduce their fuel costs at the lowest possible costs, thanks to their extensive distribution services solving the last mile problem of the rural areas they serve in. In terms of specific individual needs, Envirofit International recognizes the health hazards which open fire stove cooking can have on users, and instead utilize environmentally friendly and safe technologies as another solution.
Key Activities: The main activities of Envirofit International can be best summarized by the visual chart they have on their main website. First, they do an extensive amount of R&D, in order to maintain their main values of environmentally friendly, technologically innovative, and extremely low cost product lines. In addition, they work to design for adoption. This means they utilize focus, test groups, and surveys. This is to make sure that the products they are investing their time and money in would genuinely be impactful and useful for their customer bases. If they brought products which these customers, typically with little to no education, are unable to learn to use, then they are wasting both their own and their customers’ time and money. Next, they work to make their production to scale. Envirofit maintains well-detailed records and algorithms to make sure that they are producing the optimal amount of products, utilizing the optimal amount of resources and labor to do so. Another key activity is their extensive distribution. As noted on their website, they partner with last mile entrepreneurs, local businesses, and international distributors to enlist a team of hard working, far reaching distributors who can come together to have stoves and other products reach hard-to-reach customers, some of whom may be unable to leave their homes or travel to nearby villages. The last two activities are customer relationships and impact monitoring. They have programs to teach their customers the importance of maintaining clean stovetops, then make sure to call and keep in contact to check the impact and suggestions which products have. This way, they continue the relations they have made and utilize these customers to inspire their future innovation.
Key Partners: Envirofit has many partners, including: Shell Foundation, Clean Cooking Alliance, Johns Hopkins Bloomberg School of Public Health, Business Call to Action, UNDP, UK Aid, WFP, World Economic Forum, and One Acre Fund.
Cost Structure: Envirofit has a unique cost structure, because their website allows you to either distribute their products or buy their products. Their fixed costs are the prices they pay for their manufacturing facilities, distribution (which can be fairly expensive since they distribute so heavily), and marketing efforts. Variable costs are more of the product parts and research and development costs. An interesting aspect to Envirofit’s cost structure is their offering of cookstone carbon credits, in which customers can purchase credits to offset their CO2 emissions, which are used to support the business and can be purchased to sponsor stoves themselves which are then sold to the local in-need markets.
Key Resources: Key resources include the stove fuels (wood, charcoal, LPG), as well as all the stove parts themselves. These parts include ceramic, metal (which brings down costs greatly), plastic, steel, cast iron, and other parts. On top of this, they need their physical resources, or the manual labor going into making these stoves. They also utilize intellectual resources, through their extensive R&D as well as their Envirofit University, where they invest in intellectual property by training customers and dealers in usage and other business techniques to ensure maintained success.
Distribution Channel: The distribution channel is fairly in line with their customer segment, they partner with distributors, dealers, and larger partners who take an interest in their company and then move onto sell the products through their own respective distribution channels.
Revenue Streams: Envirofit’s main way to monetize is the asset sale, whether that be a direct sale or through dealers and distributors. They use dynamic pricing as opposed to fixed
Menu” pricing, since prices are highly likely to change based on the conditions of whatever country they are selling to. On their main website, they note that carbon emissions packages can be customized to individual needs.
Customer Segments: Their customer segments include direct customers, distributors, dealers, and partners. Distributors are individuals interested in distributing, who would have the capacity to import, purchase, and receive large volumes of Envirofit products to then sell on to other customers they have contact with. Dealers are supposed to be entrepreneurs, small businesses, or retailers who would sell the clean cooking products. These would work through their nearest country office, to see how they can best service their area. Lastly, partners are much larger government or community-based organizations who would team with Envirofit to develop a program together (such as the key partners listed above.)
Customer Relationships: Envriofit maintains very strong customer relationships, to maintain their outreach and get input on where they can expand and improve. Mainly, they provide their dealers with marketing materials, which they ship with their order so they can have greater outreach. Envriofit also have constant call center offering customer service to anyone in need. Dealers or main customers would contact the office if they ever had a problem. A recent innovation which they market on their website is the mobile monitoring which they will soon be using have dealers to monitor and track sales. Also, they offer Envirofit University, and extensive business training program for all dealers and distributors, where they provide training materials for sales agents to learn about the products, usage, and customer market information.