business case study blends cooperative
Post on 19-Aug-2015
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Case 3 Blends Cooperative LtdCase: Blends Cooperative LtdIntroductionA social entrepreneur is, in essence, someone who develops an innovative answer to a social problem (for instance, a business model for helping to tackle poverty). A decade ago the term was scarcely heard; today everyone from London to Lagos wants to be one. One such initiative is lends !ooperative, to work with farmers to produce high "uality fresh #uice from fruits and vegetables and deliver it at the door step every morning. Although a simple idea, it started with a vision of creating large scale employment and also making #uice, like milk, an integral part of every house hold$s early morning diet. Vision%hereisagreat needfor foodprocessinginacountrylike&ndia. Accordingto'mersonstudy in ()*+,around *+,+))croresworthof fruitsand vegetablesarewasted annually in &ndia.%he founders also envision an Amul like business model for lends, both for #uicedelivery, andotherwise. LikeAmul hasbecomeacooperativesuccess, creatingbottomof thepyramidemploymentalongwithsuccessfullybecoming,nanciallysustainable, thereisade,nitescopeinfoodprocessing, forfarmerstocreateagreat business idea out of it.Business Model-oor .ervice delivery models have had tremendous success in the recent years. .tarted as a private entity, lends was set up by /A graduates a couple of years back to make the busy lives of professionals, women, sportsmen, senior citi0ens and many others healthy and easy. %he company maintains "uality, produces cold pressed #uice (as opposed to traditional method) and has a good market share in the residential market in 1yderabad. 2resently, the supply of fruits and vegetables is only through the usual market places but the strategic move towards a cooperative was slowly happening. /ost of the supply will be direct3farmer based within the ne4t few months. .imilar is the involvement of farmers in the business.Cold Pressed Juice5hen you prepare #uice at home, you simply e4tract the #uice, pour it in a glass and en#oy it. ut what happens is that the blades of your #uicer add heat and e4pose the#uice to the air. %his results in o4idation and loss of vitamins, en0ymes and other important nutrients.!old pressed #uice, on the other hand, is e4tracted by pressing fruits and vegetableswithout any heat. %hese #uices are put into large chambers and a huge amount of Case 3 Blends Cooperative Ltdpressure is applied to them. %his prevents the loss of nutrients, keeping the #uice healthy. 5ith proper refrigeration, this will last for 67 hours.Target Segments & Scalability:Althoughresidential market lookslikeagoodsegment tocapture, thefoundingteam always had their eyes on the corporate clients. ut they faced some problemsconvincing the 8institutional$ clients to their product. 9uestions also lingered on scalability, especially considering the cooperative modeland the market competition in similar segments.The roblem Statement*. :ery few social enterprises have scaled up to reach the level of Amul. &dentifyfew bottlenecks in supply chain8lends$willfaceifthecompany wantstoscale up and what it can possibly do to avoid it.(. &sgettingintocorporateclientsagoodidea;5hat customersegmentsitneeds to target to meet both its social goals as well as ,nancial goals. Andhow do we reach them;+. 1ow to replicate a cooperative model creating social impact in such a foodprocessing set up;'nsure that you address the following while developing recommendations for theproblem statement. %he proposition and the wow factor -escription of the customer segment :alue proposition to all stake holders usiness model and competitive advantage
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