The document describes an innovation in mobile phone business in Bangladesh called Cell Bazaar. It allowed customers to buy and sell goods and services directly through text messages on their mobile phones, eliminating middlemen. This helped rural farmers and traders conduct business more easily. It was very successful, winning awards and inspiring similar projects elsewhere. It benefited rural communities who gained access to new markets. However, it negatively impacted middlemen and other mobile carriers who lost potential customers.

1. Dia n a Co n r a d - In d r a n a t h S e n Gupt a - Ja ika r Mo ha n
–
Jia hui Hua n g - Jie Zho u - Q if e i Zhu - To má s Go n zá l e z
A B usi ness I nnovat i on Case
St udy
Busi nova W kG oup 2009
or r

2. THE o va t io n
t h e in n t he s t o r y t h e impa c t
INNOVATION
Mobile phone market Focus on rural regions Easy­to­use
2008 GSM Award for "Best utilization of a mobile phone for
Social and Economic development"

3. THE
t h e in n o va t io n t he s t o r y t h e impa c t
INNOVATION
IVR

4. t h e in n o va t io n t he s t o r y t h e impa c t
THE INNOVATION
 Internet is not ubiquitous in a developing country
like Bangladesh, thus cell phone short message
becomes the most widely accepted means for C2C
business.
 [SMS sell video]
 [SMS buy video]

5. t h e in n o va t io n t he s t o r y t h e impa c t
NOVEL INNOVATION
Comparison with other C2C services
Cell Bazaar e­Bay Apple
­ Social motivation. ­ Profit through fees. ­ Profit from the
telecommunication
operator when user use
the iPhone.
­ Not only web, but cell ­ Focused on the web ­ Uses only one
phone. platform. telecommunication
operator to distribute
their service.
­ Educates and trains
people to use the
technology

6. t h e in n o va t io n t he s t o r y t h e impa c t
THE INNOVATION STORY
Costumer­to­Costumer
service provider.
2) Revenue model:
1) Concentrade on rural
market: GrameenPhone:
Signed contract with
 Employ salesperson and train
the users. the largest cellular
operator in the country:
 Reduce instruction to minimum 20 million subscribers.
to keep it simple.
 Teach rural people how to use it.
Fee for service.

7. t h e in n o va t io n t he s t o r y t h e impa c t
CONTEXTUALIZATION / SITUATION IN
THEIR FIELD
­ Rather poor country (per capita
income $1400 in 2006).
­ People work mostly in field of
agriculture, conservative to technologies.
­ People depended on
middlemen for trade.
­ No existing business
firm providing such C2C
cell business.

8. t h e in n o va t io n t he s t o r y t h e impa c t
THE IMPACT
 Game changer:
 Changed way of doing business by eliminating
middlemen.
CUSTOMER MIDDLEMEN CLIENT
CUSTOMER CLIENT

9. t h e in n o va t io n t he s t o r y t h e impa c t
THE IMPACT
 Revolutionized the field of C2C
business in Bangladesh by
teaching and training people how
to use mobile phones for other
purposes beyond communication.
nspired another initiative
called „Trade At Hand“ among
market people in Liberia, by
the Liberian Ministry of
Commerce in association with
a Geneva based NGO.

10. t h e in n o va t io n t he s t o r y t h e impa c t
WHO BENEFITED AND HOW
 People in the rural areas of Bangladesh.
[Video of “Story of Abdul”]
 Other customers of Grameen Phone.

11. t h e in n o va t io n t he s t o r y t h e impa c t
WHO LOST OUT?
 Loss of jobs for middlemen
 Other cell phone service providers might lose
customers
 We look forward to an interaction with Mr.
Kamal in the next couple of weeks to fill in more
here

12. SOURCE OF THE IMAGES:
 Cell Bazaar website:
 http://www.cellbazaar.com
 Wikipedia:
 http://en.wikipedia.org/wiki/Grameenphone
 Flickr:
 http://www.flickr.com/photos/whiteafrican/2736560904/ (CC licensed photo)
 http://www.flickr.com/photos/16822508@N05/2184015178/ (CC licensed photo)
 http://www.flickr.com/photos/minliu/1349445584/ (CC licensed photo)
 http://www.flickr.com/photos/avlxyz/3328255520/ (CC licensed photo)
 http://www.flickr.com/photos/brianauer/2145934290/ (CC licensed photo)
 http://www.flickr.com/photos/ppdigital/2054988302/ (CC licensed photo)
 http://www.flickr.com/photos/arifbd111/3421300275/
 Other sites:
 http://www.physics.harvard.edu/~wilson/arsenic/countries/arsenic_project_countries.h
 http://www.intracen.org/trade­at­hand/