SELCO Case Analysis
SELCO Case Analysis
Click to edit Master subtitle style Abhinav Sharma Daphne Albuquerque Kriti Kaushal Mridul Kumar Dhaniwala Sunakshi Agarwal Sushant Bhatia 1/20/13
Case Summary
SELCO is a for profit social enterprise which has been providing sustainable energy solutions to the poor and underserved regions of India for the past 15 years It has managed to maintain strong linkages between its end users, energy services, technology and financing as each one is interdependent on the other. 1/20/13
Situation Analysis
SELCO has reached a stage in the business where they want to spread their objective of bringing solar energy solutions to other parts of the country. At the same time, there is a change in the top management of the company, and SELCO is looking for ways to replicate their business model.
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Political: JNNSM was launched by GoI which favoured large centralized production- SMEs were unable to influence policy makers Economic: Subsidies available in Foreign markets because of which big suppliers divert to such markets.
Financing method- Customers find it difficult to get loans through existing 1/20/13 channels.
Industry Analysis
Relatively untapped industry Alternative energy interventions, only by the government Very few small and medium enterprises
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Competitors
Providing cheap and dubious quality products Competitors dont have financial model like SELCOs. Customers forced to make trade off between cost and quality, given their economic status LPG, Kerosene, Firewood, which dont involve one time investment (even 1/20/13 though more expensive in long run)
Internal Analysis
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Objectives
Long Term: Sustainable business. Create opportunities for lower income groups of society to access alternate energy sources. Middle Term: Rural electrification on a large scale(2 Lakhs rural households in 4 years)
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CRITERIA
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Alternatives
Expand SELCO geographically Diversify products to address other energy related needs Create a franchise model Invest and incubate the potential entrepreneurs to replicate SELCOs business model.
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Evaluation of Alternatives
- New employment will be provided but potential leaders wont be identified -Social objective will get compromised. -More financial burden on SELCO as innovative financing will become difficult for customers.
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Invest and incubate the potential entrepreneurs to replicate SELCOs business model
New leadership identified Social values transferred, Social objective not compromised Model can be replicated Context based ideas generated
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Best Alternative
Invest and incubate the potential entrepreneurs to replicate SELCOs business model
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Implementation
Identify potential entrepreneurs in Karnataka and other parts of the country, already working or interested in energy sector Provide training, Share knowledge and align them to the social objective of SELCO They will then develop context based ideas in their areas
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