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SELCO Case Analysis

SELCO is a social enterprise that has provided sustainable energy solutions to rural India for 15 years. It is looking to expand its mission of bringing solar energy to more areas. It is considering franchising its business model, diversifying its product offerings, or incubating new social entrepreneurs to replicate the SELCO model. After analyzing the alternatives, SELCO determines that incubating potential entrepreneurs in other regions is the best approach, as it will identify new leadership, transfer SELCO's social values, allow the model to be adapted to new contexts, and support SELCO's social objective of rural electrification without comprising its financial viability.

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Sushant Bhatia
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1K views

SELCO Case Analysis

SELCO is a social enterprise that has provided sustainable energy solutions to rural India for 15 years. It is looking to expand its mission of bringing solar energy to more areas. It is considering franchising its business model, diversifying its product offerings, or incubating new social entrepreneurs to replicate the SELCO model. After analyzing the alternatives, SELCO determines that incubating potential entrepreneurs in other regions is the best approach, as it will identify new leadership, transfer SELCO's social values, allow the model to be adapted to new contexts, and support SELCO's social objective of rural electrification without comprising its financial viability.

Uploaded by

Sushant Bhatia
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SELCO : Harnessing Sunlight to Create Livelihood

Click to edit Master subtitle style Abhinav Sharma Daphne Albuquerque Kriti Kaushal Mridul Kumar Dhaniwala Sunakshi Agarwal Sushant Bhatia 1/20/13

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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.
1/20/13

External EnvironmentPESTEL Analysis

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

1/20/13

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

1/20/13

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)
1/20/13

CRITERIA

Identifying new leadership and ideas Social objective Financial viability

1/20/13

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.
1/20/13

Evaluation of Alternatives

Expand SELCO geographically

- 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.
1/20/13

Increase in cost due to R&D

Diversify products to address other energy related needs

Leadership problem not addressed

1/20/13

Create a Franchise model


- Bitter past experience in AP -Target pressure on franchise to increase sales, making objective purely commercial -Effective leadership not identified

1/20/13

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

1/20/13

Best Alternative

Invest and incubate the potential entrepreneurs to replicate SELCOs business model

1/20/13

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
1/20/13

SELCO will continue to support and

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