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Harvard Case - WATEROAM: THE QUEST FOR SOCIAL IMPACT AND SUSTAINABILITY

"WATEROAM: THE QUEST FOR SOCIAL IMPACT AND SUSTAINABILITY" Harvard business case study is written by Cheng Boon Koh, Shirley Koh, Maw Der Foo. It deals with the challenges in the field of Entrepreneurship. The case study is 11 page(s) long and it was first published on : Jun 20, 2021

At Fern Fort University, we recommend Wateroam pursue a hybrid growth strategy that leverages its strong social impact and sustainability credentials to achieve both financial and environmental goals. This strategy involves a multi-pronged approach encompassing strategic partnerships, targeted market expansion, product diversification, and leveraging technology and analytics to enhance operational efficiency and customer experience. By focusing on sustainable business model innovation, Wateroam can attract investors and achieve long-term success while contributing to a more sustainable future.

2. Background

Wateroam is a social enterprise aiming to provide clean and affordable water to communities in emerging markets. Founded by passionate entrepreneurs, the company has developed a unique water filtration system that utilizes solar power and is designed for easy assembly and maintenance. Wateroam?s mission is to address the global water crisis while creating sustainable livelihoods and empowering communities.

The case study highlights Wateroam?s initial success in securing funding through angel investing and venture capital. However, the company faces challenges in scaling its operations, navigating the complexities of international business, and achieving profitability.

3. Analysis of the Case Study

Wateroam?s success hinges on its ability to balance its social mission with financial viability. To analyze the case, we can utilize the following frameworks:

  • Porter?s Five Forces: Analyzing the competitive landscape reveals a fragmented market with numerous players, including established water filtration companies, NGOs, and local entrepreneurs. Wateroam?s competitive advantage lies in its innovative technology, social impact focus, and potential for scalability.
  • Business Model Canvas: Wateroam?s current business model relies on selling water filtration systems to communities, with potential revenue streams from maintenance contracts and water sales. However, this model needs refinement to address the challenges of affordability, distribution, and long-term sustainability.
  • Growth Hacking: Wateroam needs to implement effective growth hacking strategies to increase customer acquisition, engagement, and brand awareness. This could involve leveraging social media, strategic partnerships, and community outreach programs.

4. Recommendations

  1. Strategic Partnerships: Wateroam should forge strategic partnerships with NGOs, local governments, and international organizations to expand its reach and access new markets. These partnerships can provide access to funding, expertise, and distribution networks.
  2. Targeted Market Expansion: Wateroam should focus on expanding into specific emerging markets with a high demand for clean water and a supportive regulatory environment. This requires thorough market research and a deep understanding of local needs and cultural nuances.
  3. Product Diversification: Wateroam should explore developing additional products and services that address the broader water crisis, such as water purification systems for homes, schools, and healthcare facilities. This diversification can create new revenue streams and enhance the company?s value proposition.
  4. Leveraging Technology and Analytics: Wateroam should invest in technology and analytics to improve operational efficiency, enhance customer experience, and gain valuable insights into market trends. This could include developing a mobile application for customer support, data-driven pricing models, and predictive maintenance systems.
  5. Sustainable Business Model Innovation: Wateroam should explore innovative business models that align with its social mission and financial sustainability. This could involve exploring pay-per-use models, microfinance options, or community-based ownership structures.

5. Basis of Recommendations

These recommendations align with Wateroam?s core competencies and mission of providing clean water and empowering communities. They address the needs of external customers and internal clients by providing affordable and reliable solutions, while also considering the competitive landscape. The recommendations are attractive from a financial perspective, as they aim to increase revenue streams, improve operational efficiency, and attract investors.

Key assumptions include the availability of funding, the willingness of partners to collaborate, and the successful implementation of technological solutions.

6. Conclusion

By implementing these recommendations, Wateroam can achieve its social impact goals while ensuring financial sustainability. The company can position itself as a leading player in the global water sector, attracting investors and creating a positive impact on the lives of millions.

7. Discussion

Alternative strategies include focusing solely on social impact and relying on grants and donations, or pursuing a purely commercial approach with a focus on profit maximization. However, these options may not be sustainable in the long run.

Key risks include the challenges of navigating complex regulatory environments, managing international partnerships, and ensuring the quality and reliability of products and services.

8. Next Steps

  1. Within 6 months: Conduct a comprehensive market analysis and identify target markets for expansion.
  2. Within 12 months: Establish strategic partnerships with NGOs, government agencies, and international organizations.
  3. Within 18 months: Develop a pilot program for product diversification and explore innovative business models.
  4. Within 24 months: Implement technology solutions to enhance operational efficiency and customer experience.

By following these steps, Wateroam can embark on a journey toward sustainable growth and social impact, leaving a lasting legacy in the global water sector.

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Case Description

David Pong, co-founder and CEO of a water technology start-up, had good news to share with his team: after several rounds of pitching and evaluation, they had raised seed funding for their social enterprise, Wateroam. David had started Wateroam as a fresh university graduate with two younger co-founders in August 2014. The trio's mission was to tackle the global problem of water scarcity by providing water filtration systems to the rural poor. As a new start-up, Wateroam faced challenges in funding, product innovation, sales and distribution. Wateroam broke even in its second year of operation. In the four years since its formation, the social enterprise, which is based in Singapore, has provided people in 14 countries with access to clean water. Now, with this round of seed funding, Wateroam was poised to enter its next phase of growth and reach out to more underserved communities that were in dire need of clean water. As CEO, David had many important decisions to make. Chief among them was how he should scale up Wateroam, bearing in mind the latter's double bottom line of profitability and social impact.

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