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After three years in business together, Des Carpenter and Kees Schaddelee had a decision to make – should they double the size of their location, based on the opportunities and competitive threats they perceived? The startup phase took longer than expected and access to distribution channels was more difficult than expected. Nonetheless, the business gained traction with online sales that proved the concept of custom-made counters using EnvironiteTM technology was viable. As they prepared to expand the business, the owner-managers needed to decide on a growth strategy that would let them leverage their strengths. In analyzing their successes so far, they needed to evaluate their business model including their product line, target markets, marketing strategy (including the pricing strategy, product lines, and channels of distribution) and operations.

Data were collected through interviews with business owners and a review of company documents, production processes and the company website.

This case exercise will suit strategy and entrepreneurship students at both the senior undergraduate level and graduate level. The case discussion will ask students to consider operations, supply chain management, marketing and other issues, all through the lens of a holistic vision for the company. This case may be taught as an example of a growth strategy or a business model in a capstone business strategy course or higher level entrepreneurship course. It is appropriate for both undergraduate seniors and graduate students.

This case may be taught as an example of a growth strategy or a business model in a capstone business strategy course or higher-level entrepreneurship course. The case may be used to help students understand external and internal analysis, identifying the sources of value creation and competitive advantage, and creating an appropriate strategy for growth. It provides a rich context to discuss and apply the following conceptual tools: the application of a value chain analysis and the application of a business model canvas (key partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure and revenue streams). The case may also be used to reinforce the applications of growth phases in a young firm that are part of the entrepreneurial setting, for example, value proposition, ideal customer, revenue streams and key performance indicators.

The learning outcomes are as follows: Understand the concept and characteristics of Bottom of Pyramid (BoP) markets; understand the concept and characteristics of frugal innovations; understand the Design Thinking approach to product design and how it might be useful to develop frugal innovations for BoP markets.

The case details the journey of a group of students at a premier engineering college in India. The group aimed to develop and implement a social innovation that addressed a serious and important health issue – menstrual hygiene practices among urban slum dwellers in India. The case begins with how a chance visit to an NGO inspired a pair of students to take up this issue, how the project unfolded at their college, the challenges faced in their journey and, finally, an outcome that was only a partial success. It raises important questions of challenges that are specific to bottom of pyramid markets in emerging economies. The case can provide a context for discussions on approaching frugal innovations from a Design Thinking perspective.

This case can be used in social innovation courses/modules at an undergraduate or graduate level in social innovation and social entrepreneurship courses. The case is best positioned towards the beginning of the course as an overview of the process of Social Innovation, and to discuss the relevance of concepts of BoP markets and frugal innovation.

Teaching Notes are available for educators only.

CSS 7: Management Science.