Base of the Pyramid: Pay-Per-Use
9 questions for your business model
Fixed cost funding partner
What can partners do better than you or at a lower cost (and thus leverage your business model)?
Product support (0% failure)
What are your key activities and how difficult are they to perform (by others)?
No-maintenance end product
Adequate population density
Local management infrastructure
What are your key resources and how difficult are they to copy (by others)?"
Low-cost durables and convenience
Explicit cash-to-usage conversion
Which one of your customers's problems are you solving and why will he work with you rather than with a competitor?
Loyal service (not necessarily loyal customer!)
What type of relationship does your customer expect you to establish and maintain with him?
DISTRIBUTION & ACQUISITION CHANNELS
Through which means does your customer want to be reached and addressed by you?
Who are your customers? what are your customers' needs, desires and ambitions?
Variable cost low in absolute terms
What is the cost structure of your business model and is it in harmony with the core idea of your business model?
REVENUE STREAMS / PRICING
What value are your customers really willing to pay for and how will they pay for it?
BM| DESIGN |ER
Not that bad
The Monitor Group described MARKET-BASED SOLUTIONS TO THE CHALLENGES OF GLOBAL POVERTY in its report Emerging Markets, Emerging Models (on slideshare:
Pay-per-Use is the first of the five patterns that can serve the poor as customers. Speciality: