Review reading from Bridge International class: "Disruptive Innovation for Social Change"
Latitude Responsable Danone Communities - Projet Grameen Danone
Note: Please watch this short (8-minute) video as part of class preparation.
1. Evaluate the Grameen Danone business model. What are its attractive features? What are its weaknesses? 2. Prof. Yunus's Social Business Model is explained on pages 1 and 2 of the case. What is your evaluation of this concept? What are its advantages and disadvantages? 3. How well is Grameen Danone achieving its business objectives? Its social objectives? 4. What should Grameen Danone do differently (if at all) to address the goal of providing nutrition to the undernourished children of Bangladesh? 5. Do you like the danone.communities funding model? Is it an application of the social business model?
Despite early praise, there have been some troubling criticisms of the project. While Shokti Doi is more affordable than other yogurts on the market, this did not translate into high sales within the Base of the Pyramid (BOP). This was due to several factors, including the following: * There are some indications that suggest that yogurt is considered a luxury item and is not regularly consumed by low-income people. * In South Asia, yogurt is more commonly made in the home rather than purchased from a store. * Yogurt requires proper storage in order to retain the same level of quality. Although the Shokti yogurt remains safe without refrigeration for a period of time, the yogurt becomes more liquid in consistency and is less appealing to consumers. * Grameen sales ladies did not treat yogurt sales as a full-time income generation activity, but rather as a source of supplemental income. This could be a result of personal preference, a potential overestimation of the demand for yogurt in the BOP/rural markets or a combination of the...