3. Barriers in search of solution
Selling low-margin product in high volume.
Companies seeking to source agricultural products or
other goods from the BOP face significant obstacle of
their own:
-expense of distributing input.
-collecting output.
-monitoring and training these rural suppliers .
4. Partnering with already established markets or
NGOs
- Mismatch in priorities (social v/s business)
- Operational differences (differing quality and standards)
- perception that partners are not always transparent for
their true objective.
5. Some other common problems and their solution
Uncertain cash flows.
- Repackaging
- credit
- installments accepting
- Pay per use strategy.
- Specialize & standardize
Gauging demand
Sales & distribution challenges
- team up with already established market
- distribution through highly fragmented local market
6. Disaggregated supplier
- Active monitoring of suppliers
- Indexing purchase price to the market price
- Making future participation contingent on compliance.
Undeveloped business ecosystem.
eg: safaricom M-pesa money
transfers kept it’s interaction
with retail outlets that sold airtime
minutes.
7. Risks
Image
Brand
Cannibalization
Underestimating the competition.
Creating new kind of business
Hollard funeral policies
Voltic Bottled water Ghana.