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Base of the Pyramid: Pay-Per-Use

9 questions for your business model

Activity perspective

PARTNERS

  Fixed cost funding partner
  Logistics infrastructure
  Socio-political infrastructure
  NGOs

What can partners do better than you or at a lower cost (and thus leverage your business model)?

KEY ACTIVITIES

  Product support (0% failure)
  Enforcement of payments
  Push/awareness marketing
  Product education

What are your key activities and how difficult are they to perform (by others)?

KEY RESOURCES

  No-maintenance end product
  Generalised product
  Adequate population density
  Utility infrastructure
  Local management infrastructure

What are your key resources and how difficult are they to copy (by others)?"

Offer perspective

VALUE PROPOSITION

  Low-cost durables and convenience
  Explicit cash-to-usage conversion
  Control over spending
  Immediate benefit

Which one of your customers's problems are you solving and why will he work with you rather than with a competitor?

 
Client perspective

RELATIONSHIPS

  Information
  Loyal service (not necessarily loyal customer!)

What type of relationship does your customer expect you to establish and maintain with him?

DISTRIBUTION & ACQUISITION CHANNELS

  Existing retail
  Franchises
  Government / NGO

Through which means does your customer want to be reached and addressed by you?

CUSTOMERS

  $1/day family income

Who are your customers? what are your customers' needs, desires and ambitions?

 

COST STRUCTURE

  Scale fixed cost set-up
  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?

Financial perspective
 

REVENUE STREAMS / PRICING

  Pay-per-use
  Metered
  Portioned
  Pre-paid

What value are your customers really willing to pay for and how will they pay for it?

 
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Gravatar gsteens

The Monitor Group described MARKET-BASED SOLUTIONS TO THE CHALLENGES OF GLOBAL POVERTY in its report Emerging Markets, Emerging Models (on slideshare: http://tinyurl.com/ml7uhx ).
Pay-per-Use is the first of the five patterns that can serve the poor as customers.

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Last Updated: 2009-08-06
Tags: draft emerging-markets monitor social-venturing