Harvard Case - Jeevika: Supporting Producers at the Base of the Pyramid
"Jeevika: Supporting Producers at the Base of the Pyramid" Harvard business case study is written by Jeevan Arakal, Niraj Kumar, Kiran Kumari, Manoj Kumar. It deals with the challenges in the field of Strategy. The case study is 12 page(s) long and it was first published on : Oct 7, 2021
At Fern Fort University, we recommend Jeevika adopt a multi-pronged growth strategy that leverages its existing strengths in technology and analytics to expand its reach, enhance its value proposition, and solidify its position as a leading player in the emerging markets of rural India. This strategy will involve a combination of organic growth, strategic partnerships, and selective acquisitions, all driven by a commitment to corporate social responsibility and sustainable development.
2. Background
Jeevika is a non-profit organization operating in rural India, aiming to improve the livelihoods of farmers and artisans by connecting them to markets through a digital platform. The organization faces challenges in scaling its operations, increasing its impact, and ensuring financial sustainability.
The main protagonists in the case study are:
- Jeevika: The organization itself, striving to achieve its mission of empowering producers.
- Farmers and artisans: The target beneficiaries of Jeevika's services, seeking better market access and income opportunities.
- Jeevika's leadership: The team responsible for navigating the organization's growth and ensuring its long-term success.
3. Analysis of the Case Study
To analyze Jeevika's situation, we can apply a combination of frameworks:
a) SWOT Analysis:
- Strengths: Strong technology platform, existing network of producers, positive impact on rural communities, strong brand reputation.
- Weaknesses: Limited resources, lack of financial sustainability, dependence on external funding, scaling challenges.
- Opportunities: Growing demand for rural products, increasing internet penetration, government initiatives supporting rural development, potential for partnerships with large corporations.
- Threats: Competition from other platforms, fluctuating market prices, dependence on weather conditions, potential for technology disruption.
b) Porter's Five Forces:
- Threat of new entrants: Moderate, as developing a similar platform requires significant investment and technical expertise.
- Bargaining power of buyers: Moderate, as producers have limited bargaining power but can switch platforms.
- Bargaining power of suppliers: Low, as Jeevika works directly with producers.
- Threat of substitute products: Moderate, as traditional marketing channels and other platforms exist.
- Rivalry among existing competitors: Moderate, as competition is increasing but Jeevika has a strong brand and established network.
c) Value Chain Analysis:
Jeevika's value chain consists of:
- Inbound logistics: Sourcing and connecting with producers.
- Operations: Platform development, data management, and order fulfillment.
- Outbound logistics: Delivering products to customers.
- Marketing and sales: Promoting Jeevika's services and connecting producers with buyers.
- Customer service: Providing support to both producers and customers.
d) Business Model Innovation:
Jeevika can explore various business model innovations, such as:
- Subscription model: Offering premium services to producers for a monthly fee.
- Value-added services: Providing training, financial literacy programs, and access to micro-loans to producers.
- Partnerships with retailers: Integrating with online and offline retailers to reach a wider customer base.
- Data-driven insights: Leveraging its data analytics capabilities to provide market intelligence and personalized recommendations to producers.
4. Recommendations
Based on the above analysis, we recommend the following:
a) Organic Growth:
- Expand geographic reach: Target new regions with high agricultural potential and strong demand for rural products.
- Increase producer base: Implement targeted outreach programs and leverage social media to attract more farmers and artisans.
- Enhance platform features: Introduce new functionalities like online payment processing, product quality assurance, and logistics management.
- Develop value-added services: Offer training programs, financial literacy workshops, and access to micro-loans through partnerships with financial institutions.
b) Strategic Partnerships:
- Collaborate with large corporations: Partner with companies seeking to source sustainable and ethically produced goods from rural areas.
- Engage with government agencies: Secure funding and collaborate on initiatives promoting rural development and agricultural technology.
- Form alliances with NGOs: Partner with organizations working on similar initiatives to expand reach and share resources.
c) Selective Acquisitions:
- Acquire smaller platforms: Consider acquiring complementary platforms to expand reach and access new markets.
- Integrate technology solutions: Acquire companies specializing in agricultural technology, data analytics, or logistics to enhance Jeevika's capabilities.
5. Basis of Recommendations
These recommendations are based on the following factors:
- Core competencies and consistency with mission: Jeevika's core competencies lie in technology, data analytics, and its network of producers. These recommendations leverage these strengths to achieve its mission of empowering rural producers.
- External customers and internal clients: The recommendations cater to the needs of both producers and customers by providing access to markets, value-added services, and improved platform functionality.
- Competitors: The recommendations aim to differentiate Jeevika from its competitors by focusing on its social impact, technology-driven solutions, and commitment to sustainable development.
- Attractiveness: The recommendations are expected to generate positive financial returns through increased revenue, improved efficiency, and expanded market share.
6. Conclusion
By implementing these recommendations, Jeevika can achieve sustainable growth, expand its impact on rural communities, and solidify its position as a leading platform connecting producers to markets. The organization can leverage its existing strengths in technology and analytics to create a sustainable competitive advantage in the emerging markets of rural India.
7. Discussion
Other alternatives not selected include:
- Focusing solely on organic growth: This approach may be slow and challenging to implement, especially considering Jeevika's limited resources.
- Merging with another organization: While this could provide access to resources and expertise, it may compromise Jeevika's core values and mission.
Risks and key assumptions:
- Competition: The market for rural e-commerce platforms is becoming increasingly competitive, which could impact Jeevika's growth.
- Technology disruption: New technologies could emerge, potentially making Jeevika's platform obsolete.
- Government policy changes: Changes in government policies could affect Jeevika's operations and funding.
8. Next Steps
To implement these recommendations, Jeevika should:
- Develop a detailed strategic plan: Outline specific goals, timelines, and resource requirements for each initiative.
- Secure additional funding: Explore new funding sources, including impact investments, corporate social responsibility initiatives, and government grants.
- Build a strong leadership team: Recruit experienced professionals with expertise in technology, business development, and social impact.
- Monitor progress and adapt: Regularly track key performance indicators, assess the effectiveness of initiatives, and make necessary adjustments.
By taking these steps, Jeevika can effectively leverage its strengths, navigate the challenges, and achieve its ambitious goals of empowering producers at the base of the pyramid.
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Case Description
In May 2019, project managers with the Bihar Rural Livelihoods Promotion Society (Jeevika) in Patna, India, met to consider their role in creating farmer producer companies (FPCs) that helped poor agricultural producers access markets and receive fair prices for their produce, mainly litchi fruit. The creation of such producer companies was not a spontaneous process but often required a catalyst to harness community-based networks. While Jeevika, a project supported by the Government of Bihar and the World Bank, had been successful in alleviating poverty among those at the base of the economic pyramid, the project managers were now reflecting on the way forward for the producer company. Their overarching aim was a comprehensive understanding of the effects of their efforts on the community and the key variables affecting the sustainability of their efforts. They were aware that they could not support the community indefinitely, and they needed to consider how best to empower the producers to do this work on their own once Jeevika was no longer available. What new capabilities would farmers need to develop over time? How would the relationships between farmers and other stakeholders change when support from Jeevika was reduced or removed?
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