Doing Business with the Poor a Field Guide, is a report that explores the way in which several leading companies are developing magnificent business models that are designed to assist them to generate more revenue while serving the needs of the poor through innovative commercial operations. The guide gives us a variety of approaches from different corporations on how doing business with the poor. It also give us examples on how companies can help stimulate local markets and how those companies promote the poor communities to be active participants as principal customers and entrepreneurs as well.
The section that calls my attention was the example of Vodafone and their strategy of empowering people in order to be successful in South Africa.
The first critical issue that I found is the lack of information regarding the target market that Vodafone had to experience while entering into South Africa. They had to do different business model adjustments in order to be successful.
Another critical issue was that Vodafone’s first strategy of issue phones to faculty and administrators at universities and technical colleges in disadvantaged areas didn’t achieve its intended goals because faculty used the phones for themselves, and students were rarely given access.
The last issue that I could identify is that there was so much competition “to be a shop owner “ that Vodacom was in the position to select franchisees who can find ways to make the initial investment and people without resources was not able to be part of the project.
With an innovative business model like Vodafone’s any company could be able to promote new jobs and unquantifiable spin-off economic gains for poor communities. You can run a successful company while helping the people the need the most.
Is crucial as a manager to be able to recognized the importance of tapping into local knowledge and expertise and this is what Vodafone...
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