Harvard Case - The Albeiro Vargas & the Guardian Angels Foundation (A)
"The Albeiro Vargas & the Guardian Angels Foundation (A)" Harvard business case study is written by Roberto Gutierrez, Maria Patricia Castro. It deals with the challenges in the field of Entrepreneurship. The case study is 14 page(s) long and it was first published on : Sep 22, 2020
At Fern Fort University, we recommend that Albeiro Vargas focus on a growth strategy that leverages the Guardian Angels Foundation's strong brand and reputation in the emerging markets of Latin America. This strategy should prioritize business model innovation to address the unique needs of these markets, while also exploring strategic partnerships to accelerate expansion. We recommend exploring venture capital and angel investing to secure the necessary funding for this growth initiative.
2. Background
Albeiro Vargas, a visionary entrepreneur, founded the Guardian Angels Foundation (GAF) with the mission of providing affordable healthcare services to underserved communities. GAF?s innovative business model, utilizing a network of mobile clinics and telemedicine, has proven successful in Colombia. The case study explores Vargas?s decision to expand GAF?s operations to other Latin American countries, facing challenges like funding, regulatory hurdles, and cultural differences.
3. Analysis of the Case Study
This case study presents a compelling scenario for analyzing a social enterprise?s growth strategy. We can apply the following frameworks:
- Porter?s Five Forces: Analyzing the competitive landscape reveals a growing demand for affordable healthcare in Latin America, with limited competition from established players. However, GAF faces challenges from local NGOs and government initiatives.
- Business Model Canvas: Examining GAF?s existing model highlights its strengths: a scalable, technology-driven approach with a strong social impact. However, adapting the model to different cultural contexts and regulatory environments presents a significant challenge.
- Growth Hacking: GAF?s initial success was driven by leveraging technology and community outreach. Applying growth hacking principles to the international expansion could involve strategic partnerships with local NGOs, leveraging social media for awareness, and utilizing data analytics to optimize resource allocation.
4. Recommendations
- Focus on Key Emerging Markets: GAF should prioritize expansion into Latin American countries with high demand for affordable healthcare, favorable regulatory environments, and strong potential for social impact. Initial focus on countries like Peru, Ecuador, and Chile could prove beneficial.
- Adapt the Business Model: GAF should adapt its business model to address the unique needs of each target market. This could involve:
- Localizing services: Tailoring healthcare offerings to specific cultural practices and health needs.
- Partnering with local NGOs: Leveraging existing networks and community trust to build local presence.
- Developing mobile applications: Utilizing technology to improve accessibility and communication in areas with limited infrastructure.
- Secure Funding: GAF should actively seek funding from various sources:
- Venture Capital: Attracting investors interested in social impact ventures with high growth potential.
- Angel Investors: Seeking individual investors who believe in GAF?s mission and are willing to provide early-stage funding.
- Crowdfunding: Engaging the public to contribute to GAF?s expansion through online platforms.
- Build Strong Partnerships: GAF should forge strategic partnerships with local organizations:
- Healthcare providers: Collaborating with local clinics and hospitals to expand service offerings.
- Pharmaceutical companies: Securing affordable drug supplies and developing joint initiatives.
- Technology companies: Partnering with tech firms to develop and deploy innovative solutions.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: GAF?s core competency lies in delivering affordable healthcare through innovative technology. This aligns with its mission to serve underserved communities, making international expansion a logical next step.
- External Customers and Internal Clients: The recommendations prioritize addressing the needs of both external customers (patients) and internal clients (healthcare providers). This ensures a holistic approach to expansion.
- Competitors: The recommendations consider the competitive landscape, focusing on differentiation through GAF?s unique business model and social impact focus.
- Attractiveness: The recommendations are based on the potential for high ROI, scalability, and social impact. The focus on emerging markets with high demand and limited competition increases the attractiveness of GAF?s expansion strategy.
6. Conclusion
By focusing on strategic expansion into key emerging markets, adapting its business model to local needs, securing appropriate funding, and forging strategic partnerships, GAF can achieve significant growth while fulfilling its social mission. This approach leverages GAF?s core competencies, strengthens its brand, and positions it as a leader in the global healthcare landscape.
7. Discussion
Alternative strategies could include:
- Focusing solely on organic growth: This would involve relying on internal resources and gradual expansion, but could limit GAF?s growth potential.
- Merging with a larger healthcare organization: This could provide access to resources and expertise, but could compromise GAF?s independence and mission.
Key risks associated with the recommended strategy include:
- Regulatory hurdles: Navigating different healthcare regulations in each target market could be challenging.
- Cultural differences: Adapting GAF?s services and communication to diverse cultures could be complex.
- Competition: GAF may face competition from established healthcare providers and local NGOs.
8. Next Steps
- Market research and due diligence: Conducting thorough research on target markets to identify key opportunities and challenges.
- Developing a detailed business plan: Outlining the expansion strategy, financial projections, and key milestones.
- Securing funding: Actively seeking funding from venture capitalists, angel investors, and crowdfunding platforms.
- Building strategic partnerships: Identifying and engaging with potential partners in each target market.
- Pilot program implementation: Launching a pilot program in a selected target market to test the adapted business model and refine the expansion strategy.
This phased approach allows GAF to mitigate risks, learn from experience, and ensure a successful international expansion.
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Case Description
The case describes how FAVAC emerged and consolidated. During the Foundation's first 15 years, the care of elderly people - many of them with physical and mental disabilities, some living on the streets, displaced by violence or abandoned by their families - was possible with financial support from various sources: state entities, international friends, a French association, local companies, institutional events and self-sustaining profitable projects. In mid-2008, Albeiro received the feasibility study for the construction of a facility for senior citizens belonging to the wealthiest families of Bucaramangan society. This project would finance up to 30% of the care costs of the vulnerable elderly people to whom Albeiro had dedicated his life. The decision to either create the second center to serve the elite or instead remain focused on serving the vulnerable elderly people and consolidating the portfolio of funding sources concludes the first part of the teaching case.
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