Harvard Case - Mosabi: Gathering Forces for Social Change
"Mosabi: Gathering Forces for Social Change" Harvard business case study is written by Caroline Tilden, Krystyna Liakh, Mona Mueller, Rachida Justo. It deals with the challenges in the field of Entrepreneurship. The case study is 6 page(s) long and it was first published on : May 19, 2020
At Fern Fort University, we recommend Mosabi pursue a hybrid growth strategy that leverages its existing strengths in social impact, technology, and community engagement while strategically expanding into new markets and product lines. This strategy will involve a combination of organic growth, through product development and marketing initiatives, and strategic partnerships with organizations aligned with Mosabi?s mission. This approach will enable Mosabi to achieve scalability, financial sustainability, and a wider reach for its social impact initiatives.
2. Background
Mosabi is a social enterprise that provides affordable and accessible mobile technology to underserved communities in South Africa. Founded by entrepreneur and social activist, Naledi Molefe, Mosabi aims to bridge the digital divide and empower individuals with access to information and opportunities. The company faces challenges in achieving financial sustainability and scaling its impact, prompting Naledi to consider various growth options.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship, disruptive innovation, and growth strategy.
Social Entrepreneurship: Mosabi?s core mission is to address a significant social problem - the digital divide - through a business model that generates social impact. This requires balancing financial sustainability with social impact, a key challenge for many social enterprises.
Disruptive Innovation: Mosabi?s approach of providing affordable mobile technology can be considered a disruptive innovation, challenging the existing market dominated by expensive smartphones and limited access to data. This presents both opportunities and risks, as Mosabi needs to navigate the complexities of competing with established players while maintaining its social mission.
Growth Strategy: Mosabi needs to develop a strategic plan to achieve scalability and financial sustainability. This involves evaluating various options, such as product development, market expansion, strategic partnerships, and funding models.
4. Recommendations
1. Product Development & Innovation:
- Develop a suite of affordable mobile applications: Focus on applications that cater to the specific needs and interests of the target market, such as education, healthcare, financial literacy, and job search.
- Explore partnerships with content providers: Collaborate with organizations offering relevant information and services to integrate their content into Mosabi?s mobile platform.
- Invest in research and development: Continuously improve the technology and user experience of Mosabi?s devices and applications to stay ahead of the competition.
2. Market Expansion & International Business:
- Expand into new markets in Africa: Identify regions with similar social needs and potential for growth.
- Explore partnerships with international organizations: Collaborate with NGOs, foundations, and government agencies to expand reach and access funding opportunities.
- Develop a localized marketing strategy: Tailor marketing campaigns to the specific cultural and linguistic nuances of each target market.
3. Strategic Partnerships & Business Model Innovation:
- Partner with mobile network operators: Secure affordable data plans for Mosabi users, making mobile technology more accessible.
- Collaborate with educational institutions: Integrate Mosabi devices and applications into educational programs, providing students with access to digital learning resources.
- Explore public-private partnerships: Partner with government agencies to provide subsidies and support for Mosabi?s initiatives.
4. Funding & Investment:
- Develop a compelling business plan: Clearly articulate Mosabi?s value proposition, growth strategy, and financial projections to attract investors.
- Explore various funding options: Seek venture capital, angel investment, crowdfunding, and grant funding.
- Build a strong investor relations team: Cultivate relationships with potential investors and communicate Mosabi?s progress and impact effectively.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Mosabi?s core competencies lie in its understanding of the target market, its ability to develop affordable technology, and its commitment to social impact. These recommendations leverage these strengths to drive growth.
- External Customers: The recommendations focus on providing value to Mosabi?s target market by offering relevant and accessible mobile applications and services.
- Competitors: The recommendations aim to differentiate Mosabi from competitors by focusing on its social mission, affordability, and user experience.
- Attractiveness: The recommendations are expected to increase revenue, expand market share, and enhance Mosabi?s social impact, making it more attractive to investors and partners.
6. Conclusion
By pursuing a hybrid growth strategy that combines organic growth, strategic partnerships, and innovation, Mosabi can achieve significant growth and expand its social impact. This approach will require a strong leadership team, a clear vision, and a commitment to continuous improvement.
7. Discussion
Alternatives:
- Focusing solely on organic growth: This could be a slower and more challenging path to achieving scalability and financial sustainability.
- Seeking acquisition by a larger technology company: This could provide immediate resources and reach but might compromise Mosabi?s social mission.
Risks:
- Competition from established players: Mosabi needs to differentiate itself and offer a unique value proposition to attract users.
- Funding challenges: Securing sufficient funding to support growth initiatives can be difficult.
- Market volatility: The mobile technology market is dynamic and subject to rapid changes.
Key Assumptions:
- The demand for affordable mobile technology in underserved communities will continue to grow.
- Mosabi will be able to develop and market innovative mobile applications that meet the needs of its target market.
- Mosabi will be able to secure partnerships with key stakeholders to support its growth strategy.
8. Next Steps
- Develop a detailed business plan outlining the growth strategy and financial projections.
- Secure funding to support the implementation of the recommended initiatives.
- Build a strong team with expertise in product development, marketing, and business development.
- Establish clear metrics to track progress and measure the impact of the growth strategy.
By taking these steps, Mosabi can position itself for sustainable growth and achieve its mission of empowering underserved communities through accessible mobile technology.
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Case Description
Founded by Chris Czerwonka, John Roberts and Julie Monniot-Gaillis, Mosabi is an app-based solution addressing the lack of financial literacy education and financial inclusion for informal sector entrepreneurs in Africa. By providing an alternative to traditional credit-scoring through education, Mosabi seeks to empower its users in the long-term, generating a multiplier effect on their lives. It is designed to be financially sustainable as it also reduces the high cost of accessing the underbanked for the financial services providers (FSPs). In order to achieve its social and financial objectives, Mosabi measures both financial and social impact and ensures the two go in lock-step.
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