Bright Light Innovations SWOT Analysis
A group of professional members of Colorado State University excited about developing and marketing the product The Starlight Stove consumes 50 to 70 percent less fuel than regular stoves The stove generates electricity from a thermoelectric generator. Competitors do not offer the same features as the Starlight Stove. Increase household income because Starlight Stoves allows families to focus more on earning more money rather than collecting fuel or wood to generate electricity The Starlight Stove costs less than the competition
The university is a non-profit organization, making it harder to find funding Working adults in Nepal make between $1 and $3 per day
Less than half of the Nepalese population can read
Marketing campaign needs to be adjusted based on technology limitations Management is launching its product in a very unique culture with economic uncertainty that can bring many challenges to the team
Offer an innovative product, Starlight Stove, where consumers can safely cook Expand to the Nepal market as the climate is accessible to promote the new product There is a target market of 89 percent of households that need electricity in Nepal The Starlight Stove will directly contribute to the reduction of erosion and flooding in Nepal Starlight Stove technologies can increase household efficiency by more than 20 percent per day Children can focus more on education because Starlight generates more hours of light
Streams and rivers can create micro-hydropower, allowing households to generate electricity at no additional cost Solar panels can offer electricity to many households
Nepal’s division into 75 districts creates a market segmentation that become a true challenge when introducing the new product The management team not being able to find a funding institution that can provide loans to the Nepalese people Evaluation of Alternatives
Bright Light Innovations has a series of considerations that need to be reviewed before making final decisions. Introducing a new product on such a unique market can represent a lot of challenges for management (Mckeever, 2005). Culture and population are important factors for management to evaluate before reaching onto this market (refer to Appendix A). There are good factors such as climate and social needs that make Nepal a strong market to introduce the stove business. However, funding and household income are big concerns for management because even though there are a lot of strengths and opportunities for Bright Light Innovations in Nepal, treats and weaknesses can negatively impact the launching of the Starlight Stove in the Nepalese market. Management wants to be a for-profit business and in order to make a profit they would have to sell the Starlight Stove for $80 per unit. As described in the case, there are about 9.2 million households in Nepal, but the GNI per capital is approximately $400. Nepalese people do not make more than $3 per week, which limits management when making pricing decisions. Micro-financing might be a possibility but they have to consider that not all households have a fixed income. Consequently, finance institutions might be hesitant to provide loans to some of the families. Since management does not want to look to donations, grants, or government relief, they will have to reach onto business leaders, government members of Nepal, and other institutions to expose the product and all the benefits it can bring to the country. As described above, some of the benefits of the Starlight Stove are: offers an innovative technology where consumers can safely cook, contributes to reduce erosion and flooding in the area, increases household efficiency by more than 20 percent per day, and generates more hours of light which can help children focus more on education. If Bright Light Innovations decides to manufacture the Starlight Stove...
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