Harvard Case - PATH and the Safe Water Project: Making Safe Water Products More Affordable
"PATH and the Safe Water Project: Making Safe Water Products More Affordable" Harvard business case study is written by Stefanos Zenios, Lyn Denend, Tim Elliott. It deals with the challenges in the field of Social Enterprise. The case study is 16 page(s) long and it was first published on : Apr 1, 2013
At Fern Fort University, we recommend that PATH implement a multi-pronged strategy to make safe water products more affordable and accessible in developing countries. This strategy will focus on leveraging partnerships, innovating product designs, and promoting social entrepreneurship to create a sustainable and scalable impact.
2. Background
PATH is a global health organization dedicated to improving the health of people around the world. The Safe Water Project is a key initiative aimed at addressing the global water crisis, particularly in developing countries where access to safe water is limited. The case study focuses on the challenges PATH faces in making safe water products, such as water filters and purification tablets, more affordable and accessible to low-income populations.
The main protagonists are:
- PATH: A non-profit organization committed to improving global health.
- The Safe Water Project: A key initiative within PATH focused on providing access to safe water.
- Developing countries: The target market for the Safe Water Project, where access to safe water is limited.
- Low-income populations: The primary beneficiaries of the Safe Water Project.
3. Analysis of the Case Study
This case study presents a complex challenge for PATH, requiring a multifaceted approach to address the affordability and accessibility of safe water products. We can analyze the case using the following frameworks:
a) Social Entrepreneurship Framework:
- Triple Bottom Line: PATH needs to consider not only the financial sustainability of the Safe Water Project but also its social and environmental impact.
- Social Innovation: PATH must explore innovative approaches to make safe water products more accessible and affordable, such as developing low-cost technologies or alternative distribution models.
- Shared Value Creation: PATH can create shared value by partnering with local communities and businesses to develop solutions that benefit both the organization and the target population.
- Base of the Pyramid (BoP) Markets: PATH needs to understand the specific needs and constraints of BoP markets and tailor its strategies accordingly.
b) Strategic Planning Framework:
- Mission Alignment: PATH's mission of improving global health aligns well with the Safe Water Project, making it a key strategic initiative.
- Market Segmentation: PATH needs to segment the target market based on income levels, access to clean water, and other relevant factors.
- Growth Strategy: PATH can explore different growth strategies, such as expanding into new markets, developing new products, or partnering with other organizations.
- Competitive Analysis: PATH needs to understand the competitive landscape of the safe water product market and identify opportunities to differentiate itself.
c) Marketing Framework:
- Product Development: PATH can explore innovative product designs that are more affordable and accessible, such as simplified water filters or biodegradable purification tablets.
- Pricing Strategies: PATH can experiment with different pricing models, such as tiered pricing or subsidies, to make its products more affordable.
- Distribution Channels: PATH needs to develop effective distribution channels that reach low-income populations, such as community-based organizations or mobile clinics.
- Marketing Communications: PATH needs to develop clear and compelling marketing messages that resonate with the target audience.
4. Recommendations
To address the challenges outlined in the case study, PATH should implement the following recommendations:
1. Develop a Social Enterprise Model:
- Establish a dedicated social enterprise unit within PATH: This unit would focus on developing and scaling affordable safe water solutions.
- Partner with local entrepreneurs and businesses: PATH should leverage the expertise and networks of local entrepreneurs to develop and distribute safe water products.
- Utilize microfinance and impact investing: PATH can explore microfinance options to provide loans to local entrepreneurs to purchase and distribute safe water products.
2. Innovate Product Design and Manufacturing:
- Develop low-cost, durable water filtration technologies: PATH can invest in R&D to create simplified and affordable water filtration systems.
- Explore alternative materials and manufacturing processes: PATH can explore using readily available materials and local manufacturing techniques to reduce costs.
- Promote open-source designs: PATH can share its designs and knowledge with other organizations to foster innovation and collaboration.
3. Expand Distribution Channels and Marketing Efforts:
- Partner with NGOs and community-based organizations: PATH can leverage existing networks to distribute safe water products to low-income communities.
- Utilize mobile clinics and community outreach programs: PATH can reach remote and underserved populations by using mobile clinics and community outreach programs.
- Develop targeted marketing campaigns: PATH should create marketing campaigns that address the specific needs and concerns of low-income populations.
4. Build Strong Partnerships:
- Collaborate with governments and international organizations: PATH can work with governments and international organizations to develop policies and programs that support access to safe water.
- Establish strategic alliances with businesses: PATH can partner with businesses to develop innovative solutions and scale up its operations.
- Foster collaboration among NGOs: PATH can work with other NGOs to share best practices and resources.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: These recommendations align with PATH's core competencies in global health and its mission to improve the health of people around the world.
- External customers and internal clients: These recommendations address the needs of both external customers (low-income populations) and internal clients (PATH staff and stakeholders).
- Competitors: These recommendations aim to differentiate PATH from competitors by focusing on social entrepreneurship, innovation, and partnerships.
- Attractiveness: These recommendations are attractive because they have the potential to create a sustainable and scalable impact.
Assumptions:
- There is sufficient demand for affordable safe water products in developing countries.
- Local entrepreneurs and businesses are willing to partner with PATH.
- Microfinance and impact investing options are available to support the project.
- PATH has the resources and expertise to implement these recommendations.
6. Conclusion
By implementing these recommendations, PATH can make significant progress in making safe water products more affordable and accessible to low-income populations in developing countries. This will contribute to improving the health and well-being of millions of people, while also creating a sustainable and scalable business model for PATH.
7. Discussion
Alternatives not selected:
- Focusing solely on product innovation: While product innovation is important, it is not sufficient to address the affordability challenge.
- Relying solely on government funding: Government funding can be unreliable and may not be sufficient to meet the needs of the target market.
Risks and key assumptions:
- Limited market demand: If there is limited demand for affordable safe water products, the project may not be successful.
- Challenges in partnering with local entrepreneurs: Finding and working with reliable local partners can be challenging.
- Lack of access to microfinance and impact investing: These options may not be readily available in all developing countries.
Options Grid:
| Option | Advantages | Disadvantages | Assumptions |
|---|---|---|---|
| Social Enterprise Model | Sustainable and scalable impact, leverages local expertise | Requires significant investment and effort, potential challenges in finding reliable partners | Sufficient demand for affordable products, availability of microfinance and impact investing |
| Product Innovation | Improved product quality and affordability | Requires significant R&D investment, may not address all affordability challenges | Availability of appropriate technologies and manufacturing processes |
| Government Funding | Reliable source of funding | Funding may be limited and unreliable, may not be sufficient to meet all needs | Government commitment to supporting access to safe water |
8. Next Steps
To implement these recommendations, PATH should take the following steps:
- Year 1: Establish a dedicated social enterprise unit, conduct market research, and develop partnerships with local entrepreneurs and businesses.
- Year 2: Pilot test new product designs and distribution channels, explore microfinance options, and develop marketing campaigns.
- Year 3: Scale up successful initiatives, expand into new markets, and monitor the impact of the Safe Water Project.
By taking these steps, PATH can create a lasting impact on the lives of millions of people by making safe water products more affordable and accessible to the world's most vulnerable populations.
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Case Description
This case provides an overview of the nonprofit organization PATH and its Safe Water Project-a five-year effort launched in late 2006 with $17 million in funding from the global development unit of the Bill and Melinda Gates Foundation. The purpose of the grant was to evaluate to what extent market-based approaches could help accelerate the widespread adoption and sustained use of household water treatment and safe storage products by low-income populations. One of the key objectives of this effort was to explore how the private sector could help make HWTS products more affordable. By conducting a portfolio of field-based pilots in collaboration with commercial partners, the PATH team sought to better understand the effect of different pricing, consumer financing, and subsidy models on demand within low-income population in developing countries. Over several years, the Safe Water Project team experimented with different affordability models, including microfinance loans for water filters and a layaway program. Although specific results varied across the pilots, which spanned India, Cambodia, and Kenya, they collectively gave rise to series of important insights about the affordability of HWTS products.
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