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Dia n a Co n r a d - In d r a n a t h S e n Gupt a - Ja ika r Mo ha n
                                    –
Jia hui Hua n g - Jie Zho u - Q if e i Zhu - To má s Go n zá l e z




A B usi ness I nnovat i on Case
St udy
Busi nova W kG oup 2009
           or r
THE  o va t io n
 t h e in n                       t he s t o r y                 t h e impa c t

INNOVATION




Mobile phone market       Focus on rural regions            Easy­to­use




             2008 GSM Award for "Best utilization of a mobile phone for 
                       Social and Economic development"
THE 
t h e in n o va t io n   t he s t o r y    t h e impa c t

INNOVATION



                                     IVR
t h e in n o va t io n     t he s t o r y       t h e impa c t


THE INNOVATION
   Internet is not ubiquitous in a developing country 
    like Bangladesh, thus cell phone short message 
    becomes the most widely accepted means for C2C 
    business.


       [SMS sell video]


       [SMS buy video]
t h e in n o va t io n              t he s t o r y               t h e impa c t

NOVEL INNOVATION

             Comparison with other C2C services
      Cell Bazaar                   e­Bay                     Apple

­ Social motivation.        ­ Profit through fees.   ­ Profit from the 
                                                     telecommunication 
                                                     operator when user use 
                                                     the iPhone.
­ Not only web, but cell     ­ Focused on the web    ­ Uses only one 
phone.                      platform.                telecommunication 
                                                     operator to distribute 
                                                     their service.
­ Educates and trains 
people to use the 
technology
t h e in n o va t io n               t he s t o r y                  t h e impa c t


    THE INNOVATION STORY

                                                          Costumer­to­Costumer 
                                                             service provider.



                                            2) Revenue model:
1) Concentrade on rural 
   market:                                                     GrameenPhone: 
                                                               Signed contract with 
    Employ salesperson and train 
     the users.                                                the largest cellular 
                                                               operator in the country: 
    Reduce instruction to minimum                             20 million subscribers.
     to keep it simple.

    Teach rural people how to use it.
                                                                Fee for service.
t h e in n o va t io n               t he s t o r y   t h e impa c t
CONTEXTUALIZATION / SITUATION IN 
THEIR FIELD

       ­  Rather poor country (per capita 
       income $1400 in 2006).


       ­   People work mostly in field of 
       agriculture, conservative to technologies.




                         ­  People depended on  
                         middlemen for trade.

                         ­  No existing business 
                         firm providing such C2C 
                         cell business.
t h e in n o va t io n        t he s t o r y            t h e impa c t

THE IMPACT
   Game changer:
       Changed way of doing business by eliminating 
        middlemen.


        CUSTOMER           MIDDLEMEN              CLIENT




                           CUSTOMER               CLIENT
t h e in n o va t io n            t he s t o r y              t h e impa c t

THE IMPACT
   Revolutionized the field of C2C 
    business in Bangladesh by 
    teaching and training people how 
    to use mobile phones for other 
    purposes beyond communication.




                                               nspired another initiative 
                                               called „Trade At Hand“ among 
                                               market people in Liberia, by 
                                               the Liberian Ministry of 
                                               Commerce in association with 
                                               a Geneva based NGO.
t h e in n o va t io n     t he s t o r y        t h e impa c t

WHO BENEFITED AND HOW

     People in the rural areas of Bangladesh.




               [Video of “Story of Abdul”]




     Other customers of Grameen Phone.
t h e in n o va t io n     t he s t o r y       t h e impa c t

WHO LOST OUT?


   Loss of jobs for middlemen

   Other cell phone service providers might lose 
    customers

   We look forward to an interaction with Mr. 
    Kamal in the next couple of weeks to fill in more 
    here
SOURCE OF THE IMAGES:
   Cell Bazaar website: 
       http://www.cellbazaar.com

   Wikipedia: 
       http://en.wikipedia.org/wiki/Grameenphone


   Flickr:
       http://www.flickr.com/photos/whiteafrican/2736560904/ (CC licensed photo)
       http://www.flickr.com/photos/16822508@N05/2184015178/ (CC licensed photo)
       http://www.flickr.com/photos/minliu/1349445584/ (CC licensed photo)
       http://www.flickr.com/photos/avlxyz/3328255520/ (CC licensed photo)
       http://www.flickr.com/photos/brianauer/2145934290/ (CC licensed photo)
       http://www.flickr.com/photos/ppdigital/2054988302/ (CC licensed photo)
       http://www.flickr.com/photos/arifbd111/3421300275/


   Other sites:
     http://www.physics.harvard.edu/~wilson/arsenic/countries/arsenic_project_countries.h
     http://www.intracen.org/trade­at­hand/

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Cell Bazaar Businova Case Study Final Draft

  • 1. Dia n a Co n r a d - In d r a n a t h S e n Gupt a - Ja ika r Mo ha n – Jia hui Hua n g - Jie Zho u - Q if e i Zhu - To má s Go n zá l e z A B usi ness I nnovat i on Case St udy Busi nova W kG oup 2009 or r
  • 2. THE  o va t io n t h e in n t he s t o r y t h e impa c t INNOVATION Mobile phone market Focus on rural regions Easy­to­use 2008 GSM Award for "Best utilization of a mobile phone for  Social and Economic development"
  • 3. THE  t h e in n o va t io n t he s t o r y t h e impa c t INNOVATION IVR
  • 4. t h e in n o va t io n t he s t o r y t h e impa c t THE INNOVATION  Internet is not ubiquitous in a developing country  like Bangladesh, thus cell phone short message  becomes the most widely accepted means for C2C  business.  [SMS sell video]  [SMS buy video]
  • 5. t h e in n o va t io n t he s t o r y t h e impa c t NOVEL INNOVATION Comparison with other C2C services Cell Bazaar e­Bay Apple ­ Social motivation. ­ Profit through fees. ­ Profit from the  telecommunication  operator when user use  the iPhone. ­ Not only web, but cell   ­ Focused on the web  ­ Uses only one  phone. platform. telecommunication  operator to distribute  their service. ­ Educates and trains  people to use the  technology
  • 6. t h e in n o va t io n t he s t o r y t h e impa c t THE INNOVATION STORY Costumer­to­Costumer  service provider. 2) Revenue model: 1) Concentrade on rural  market: GrameenPhone:  Signed contract with   Employ salesperson and train  the users. the largest cellular  operator in the country:   Reduce instruction to minimum  20 million subscribers. to keep it simple.  Teach rural people how to use it. Fee for service.
  • 7. t h e in n o va t io n t he s t o r y t h e impa c t CONTEXTUALIZATION / SITUATION IN  THEIR FIELD ­  Rather poor country (per capita  income $1400 in 2006). ­   People work mostly in field of  agriculture, conservative to technologies. ­  People depended on   middlemen for trade. ­  No existing business  firm providing such C2C  cell business.
  • 8. t h e in n o va t io n t he s t o r y t h e impa c t THE IMPACT  Game changer:  Changed way of doing business by eliminating  middlemen. CUSTOMER MIDDLEMEN CLIENT CUSTOMER CLIENT
  • 9. t h e in n o va t io n t he s t o r y t h e impa c t THE IMPACT  Revolutionized the field of C2C  business in Bangladesh by  teaching and training people how  to use mobile phones for other  purposes beyond communication. nspired another initiative  called „Trade At Hand“ among  market people in Liberia, by  the Liberian Ministry of  Commerce in association with  a Geneva based NGO.
  • 10. t h e in n o va t io n t he s t o r y t h e impa c t WHO BENEFITED AND HOW  People in the rural areas of Bangladesh. [Video of “Story of Abdul”]  Other customers of Grameen Phone.
  • 11. t h e in n o va t io n t he s t o r y t h e impa c t WHO LOST OUT?  Loss of jobs for middlemen  Other cell phone service providers might lose  customers  We look forward to an interaction with Mr.  Kamal in the next couple of weeks to fill in more  here
  • 12. SOURCE OF THE IMAGES:  Cell Bazaar website:   http://www.cellbazaar.com  Wikipedia:   http://en.wikipedia.org/wiki/Grameenphone  Flickr:  http://www.flickr.com/photos/whiteafrican/2736560904/ (CC licensed photo)  http://www.flickr.com/photos/16822508@N05/2184015178/ (CC licensed photo)  http://www.flickr.com/photos/minliu/1349445584/ (CC licensed photo)  http://www.flickr.com/photos/avlxyz/3328255520/ (CC licensed photo)  http://www.flickr.com/photos/brianauer/2145934290/ (CC licensed photo)  http://www.flickr.com/photos/ppdigital/2054988302/ (CC licensed photo)  http://www.flickr.com/photos/arifbd111/3421300275/  Other sites:  http://www.physics.harvard.edu/~wilson/arsenic/countries/arsenic_project_countries.h  http://www.intracen.org/trade­at­hand/