Harvard Case - Brightwater Ethiopia: Clean Water from Broken Wells
"Brightwater Ethiopia: Clean Water from Broken Wells" Harvard business case study is written by Christopher Williams, Gayle Allard, Atsede Tesfaye. It deals with the challenges in the field of Entrepreneurship. The case study is 11 page(s) long and it was first published on : Mar 16, 2023
At Fern Fort University, we recommend Brightwater Ethiopia pursue a hybrid growth strategy, leveraging both organic expansion and strategic partnerships. This approach will enable the company to scale its impact while maintaining its commitment to social responsibility and financial sustainability.
2. Background
Brightwater Ethiopia is a social enterprise founded by a group of young entrepreneurs with a mission to provide clean water to rural communities in Ethiopia. The company utilizes innovative technology to rehabilitate broken wells and provide sustainable water solutions. The case study highlights Brightwater?s initial success in establishing a strong reputation and achieving positive social impact. However, the company faces challenges in scaling its operations and securing sustainable funding to reach a wider audience.
The main protagonists of the case study are the founders of Brightwater Ethiopia, who are passionate about solving the water crisis in their country. They are driven by a strong social mission and possess entrepreneurial spirit, but they lack experience in scaling a business and navigating the complexities of fundraising.
3. Analysis of the Case Study
Strategic Framework: We will use Porter?s Five Forces framework to analyze Brightwater?s competitive landscape and identify opportunities for growth:
- Threat of New Entrants: Low, due to the technical expertise required and the need for strong local partnerships.
- Bargaining Power of Buyers: Moderate, as communities rely on Brightwater for clean water but may have limited financial resources.
- Bargaining Power of Suppliers: Low, as Brightwater utilizes readily available materials and technology.
- Threat of Substitutes: Moderate, as other organizations provide water solutions, but Brightwater?s innovative approach offers a unique advantage.
- Competitive Rivalry: Moderate, as Brightwater faces competition from established NGOs and local water providers.
Financial Analysis: Brightwater?s current business model relies heavily on grants and donations, which are not sustainable for long-term growth. The company needs to explore alternative revenue streams and develop a financially viable model.
Marketing Analysis: Brightwater has successfully built a strong brand based on its social mission and innovative technology. However, the company needs to expand its marketing efforts to reach a wider audience and attract potential investors.
Operational Analysis: Brightwater?s current operational model is efficient for small-scale projects. However, scaling up requires implementing robust systems for project management, supply chain management, and financial reporting.
4. Recommendations
1. Develop a Hybrid Growth Strategy:
- Organic Expansion: Expand operations into new regions with high water scarcity and unmet demand. This can be achieved through strategic partnerships with local NGOs, community leaders, and government agencies.
- Strategic Partnerships: Collaborate with international organizations, corporations, and investors to access funding, technology, and expertise. This can involve joint ventures, licensing agreements, or impact investment partnerships.
2. Diversify Revenue Streams:
- Water-as-a-Service: Offer a subscription-based model where communities pay a small fee for access to clean water. This can be facilitated through mobile payments and community-based water management systems.
- Technology Licensing: License Brightwater?s innovative water purification technology to other organizations working in the water sector. This can generate revenue and expand the reach of the technology.
- Social Impact Bonds: Explore impact investment opportunities through social impact bonds, where investors provide funding upfront and receive a return based on the achievement of social impact goals.
3. Enhance Marketing and Communications:
- Targeted Marketing: Develop a targeted marketing strategy that focuses on potential investors, donors, and partner organizations. This can involve digital marketing, public relations, and social media campaigns.
- Storytelling: Highlight the impact of Brightwater?s work through compelling stories and testimonials. This can be achieved through video content, case studies, and media outreach.
- Brand Building: Strengthen Brightwater?s brand identity by developing a consistent brand message and visual identity.
4. Implement Robust Operational Systems:
- Project Management: Establish a robust project management system to ensure efficient execution and monitoring of projects.
- Supply Chain Management: Develop a reliable supply chain to ensure timely delivery of materials and equipment.
- Financial Reporting: Implement transparent and standardized financial reporting systems to track performance and attract investors.
5. Foster a Culture of Innovation and Collaboration:
- Innovation Hub: Establish an innovation hub where Brightwater can experiment with new technologies and solutions.
- Cross-Functional Teams: Encourage collaboration between different departments to foster innovation and problem-solving.
- Knowledge Sharing: Create a culture of knowledge sharing and continuous learning within the organization.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Brightwater?s strengths, weaknesses, opportunities, and threats. They consider the company?s core competencies in technology, social impact, and local partnerships. They also address the need to attract investors, expand reach, and achieve financial sustainability.
The recommendations are aligned with Brightwater?s mission to provide clean water to rural communities and its commitment to sustainable development. They are also consistent with the company?s values of innovation, collaboration, and social responsibility.
6. Conclusion
Brightwater Ethiopia has the potential to become a leading provider of clean water solutions in Ethiopia and beyond. By implementing a hybrid growth strategy, diversifying revenue streams, enhancing marketing efforts, and strengthening operational systems, the company can achieve its social mission and become a financially sustainable enterprise.
7. Discussion
Other alternatives not selected include:
- Going public: This option could provide access to significant capital but might compromise Brightwater?s social mission and control.
- Mergers and acquisitions: Acquiring existing water providers could accelerate expansion but requires significant financial resources and integration challenges.
Key assumptions include:
- Market demand for clean water solutions: The demand for clean water in rural Ethiopia is significant and will continue to grow.
- Availability of funding: Brightwater can secure sufficient funding through grants, impact investments, and other sources.
- Successful implementation of operational systems: Brightwater can effectively implement robust systems for project management, supply chain management, and financial reporting.
8. Next Steps
Timeline:
- Year 1: Implement a pilot program for the water-as-a-service model and explore strategic partnerships.
- Year 2: Expand operations into new regions and secure funding for technology licensing and impact investment opportunities.
- Year 3: Establish a robust operational framework and enhance marketing and communication efforts.
Key Milestones:
- Develop a detailed business plan: Outline the company?s growth strategy, financial projections, and operational plan.
- Secure initial funding: Obtain seed funding to support the pilot program and initial expansion.
- Build a strong team: Recruit experienced professionals in finance, operations, and marketing.
- Develop a robust technology platform: Enhance the company?s water purification technology and develop a user-friendly platform for managing water access.
- Establish strong partnerships: Form strategic alliances with NGOs, government agencies, and international organizations.
By taking these steps, Brightwater Ethiopia can position itself for sustainable growth and make a significant impact on the lives of people in rural Ethiopia.
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Case Description
In May 2022, Ethiopian social entrepreneur Berhanu Gebeyehu had to decide on next steps for his clean drinking water business, Brightwater Ethiopia (Brightwater), which he had begun in 2019 in the southern town of Dilla. Ninety-six per cent of Dilla's households had reported on surveys that the clean water available in the town was inadequate for their needs and that school-aged girls regularly missed class because they bore the burden of collecting water, often from unsafe sources. Following two successful years of business, during which Gebeyehu had striven to contribute to the United Nations (UN) sustainable development goals (SDGs) by providing clean drinking water and boosting gender equality while also making a profit, Gebeyehu now wanted to reduce his business's dependency on the foreign non-governmental organization (NGO) that had helped fund and set up the business. He was also considering expanding his social enterprise's model across Ethiopia as well as developing a capability that would deliver clean water in plastic bottles.
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