Envirofit Case Summary Assignment

Envirofit is a social enterprise given that its main goal is to tackle problems affecting the people’s lives and the environment. The problem the enterprise focuses on included the emission by motorcycles and the product is aimed at improving the fuel economy and thus facilitate environmental conservation.  The product-kit also aims at serving the customers at the base of the pyramid since they are not able to buy the 4-stroke newer motorcycle engines. Through this the Retrofit kit aims at addressing the social well being of low income earners, environmental sustainability and hence their economic performance. Envirofit approach to shared value involves maximizing on the competitive value, seen in the need not addressed by the newer 4-stroke engines, hence targets the lower income earners whose motorcycles also contribute to emissions. Therefore, by addressing this issue the product aims at soling the issue of environmental pollution through emissions. The application offers returns on investment gotten through addressing the social needs in the market.

Envirofit motorcycle engine kit addresses the needs of those customers who cannot afford to buy the 4-stroke motorcycle engine that reduce emission hence the description of base of the pyramid market target. To accommodate this group’s unique characteristics lower purchasing power and lack of access to resources, hence the application should be geared towards addressing the problems of sustainable development and low income (Kuratko, 2008). A strong strategy is to engage this group so that they are able to create a symbiotic relationship where both parties can benefit. An aspect to be observed is that at the base of the pyramid, there can be a huge pool of clients who can drive the success of the product. In essence, as profit is being made from this project, the target group must feel they are benefiting socially.  

For the 2-stroke motorcycle engine to be launched successfully, the main obstacles include start-up financing and uncertainty regarding the ability for the product to break even. To finance the product means turning it into something feasible and tangible in terms of being accepted by target market. The funds will be necessary for popularizing the product to the intended users and sensitizing them on the need to have such a product to reduce emission. The other issues are the need to ascertain that the product will be acceptable which is important for convincing investors that it is viable.

Determining whether to be a team member of the venture requires an evaluation of viability of this idea. Hence I will embark on carrying out a thorough research on the market in terms of size and viability and the sustainability of the venture while serving customer at the base of the pyramid. I would also access the risks involved in the venture in terms of profitability and future growth. Assessing the venture on all fronts will expose any risk for an individual who wants to b part of the venture.

For the purpose of funding this idea would require approaching lenders and venture capitalist that are willing to take higher risks. The venture capitalist would be preferred in this case since they do not necessarily require security for the funds they lend to a business (Kuratko, 2008). Fewer funds would be obtained from peer-to- peer lending where few risks are involved.

Reference

Kuratko, D. F. (2008). Entrepreneurship: Theory, process, practice. Australia: South-Western.99-242