6 pre reading material english


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English language materials provided in advance to workshop participants

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6 pre reading material english

  1. 1. The Corporate Leaders Program: Base of the Pyramid Modeling Workshop Business Models and Examples for Engaging the BOP July 2010
  2. 2. BOP AS CONSUMERS: BUSINESS MODELS AND EXAMPLES Consumer Models Description Examples • No frills or simplified • Amanco (Mexico): Standardized small-scale irrigation systems sold through social BASIC version of an existing entrepreneurs PRODUCT OR product or service SERVICE • LifeSpring Hospitals (India): No frills hospital with narrow focus on maternal and child health care NEW OR • Product created or • BCI (Chile): Microloans for entrepreneurs based on credit profiles that utilize CUSTOMIZED customized to meet a need information from other organizations (e.g. suppliers) PRODUCT specific to the BOP • Mibanco (Peru): Loans for women microentrepreneurs to invest in productive assets or improved locales, coupled with financial and management training • Fonavipo (El Salvador): Housing fund that provides loans to nonregulated MFI’s that provide credit for low-income housing • Safaricom M-PESA (Kenya): Money transfer and payment services using mobile phones and an extensive network of kiosks PURCHASE • Loans to individuals or • CEMEX (Mexico): Microloans for communities to pave roads in partnership with FINANCING groups to finance local municipalities purchases • EPM (Colombia): Bill payment information from EPM used to create credit profiles and offer credit lines at a network of retail stores PAY-PER-USE • Customers pay for each use • Sunlabob (Laos): Rental solar-recharging stations and lanterns for villages SERVICE instead of owning asset without electricity • Union Fenosa (Colombia): Payment collection and customer service through local BOP enterprises in order to reduce payment losses SMALL UNIT • Product sold at more • Procter & Gamble (Venezuela): Bulk sales of shampoo, diapers, and detergent to SIZE PRODUCT affordable unit size buyers’ clubs who can sell to BOP in smaller unit quantities • Danone (Senegal): 50-gram portions of drinkable yogurt sold at a lower price Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 1 length case studies. All other examples are from public sources reviewed in Dalberg research.
  3. 3. BOP AS DISTRIBUTORS/RETAILERS AND EMPLOYEES: BUSINESS MODELS AND EXAMPLES Distributor/ Retailer Models Description Examples • Distribute products and • MiTienda (Mexico): Provide warehousing and supply chain technical assistance LAST MILE TO services to hard-to-reach to small grocery stores which are owned by the BOP and which reach BOP BOP BOP consumers consumers • Holcim Apasco (Mexico): Construction material depots located closer to BOP households • Coca-Cola (East Africa): BOP manual distribution centers used to distribute beverages to dense urban and peri-urban centers INCREASING • BOP used to create new • Nestlé (Brazil): BOP used as local direct sales agents and micro-retailers who sell POINTS OF points of sale (e.g. sales products in smaller package quantities to BOP consumers in favelas SALE agents, micro-retailers) • Lydec (Morocco): Local extension workers provide technical support and ensure customer satisfaction/retention Employee Models Description Examples OUTSOURCING • Outsourcing work to BOP • LabourNet (India): Database established to match unorganized workers and employees, often through companies with staffing needs an intermediary • TeamLease (India): Service that identifies and contracts temporary workers for service sector companies UPSKILLING • Training the BOP to fill • Guangsha Construction (China): Free required training courses for construction PEOPLE staffing needs workers in order to reduce the number of on-site accidents DESKILLING • Operations disaggregated • Aravind EyeCare (India): Increased operations performed by less-skilled workers TASKS into discrete tasks that can in order to optimize utilization of doctors and increase throughput be performed by BOP employees Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 2 length case studies. All other examples are from public sources reviewed in Dalberg research.
  4. 4. BOP AS SUPPLIERS: BUSINESS MODELS AND EXAMPLES Supplier Models Description Examples • Direct purchase from BOP • Colineal (Ecuador): Technical assistance provided to woodworkers to produce DIRECT suppliers, who may or may furniture according to specifications PURCHASE not have aggregated their • Mundo Verde (Brazil): Small local suppliers used to increase diversity and production improve marketing of wellness products • Natura (Brazil): Traditional farmers used to supply materials for a new environmentally-friendly cosmetics line • Pronaca (Ecuador): Support local farmers with training, access to credit, and new technology to stabilize maize supply • Starbucks (Latin America): Purchase coffee from suppliers who meet standards for sustainable coffee production BOP-OWNED • Purchase from cooperative • Wal-Mart (Latin America): Purchases from local cooperatives of small farmers COOPERATIVE or other organization that are used to diversify supply chain is owned by BOP suppliers • Amul (India): Multi-layer cooperative structure that collects milk from fragmented dairy farmers • Fabindia (India): Co-owned cooperatives that utilize craft artisans in the production of clothing and home furnishings THIRD PARTY • Purchase from • InterfaceFLOR (India): Partnership with a social enterprise that works with AGGREGATOR intermediary that local artisans to produce traditional floor tiles aggregates production • SABMiller (India): Provide barley farmers with certified seeds and training, but from BOP suppliers purchase from a third party contractor that aggregates production Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 3 length case studies. All other examples are from public sources reviewed in Dalberg research.