BUS115 Summer 2019: Analyzing d.light and M-Kopa Ventures

This report analyzes the entrepreneurial ventures of d.light and M-Kopa, two companies focused on providing sustainable energy solutions. The report begins by examining d.light's success in a business plan competition, highlighting the large market of people without electricity and the appeal of solar energy. It then explores marketing strategies, particularly focusing on lower pricing and local-level distribution to reach target customers. The report then introduces M-Kopa, a Kenyan solar energy firm, as another example of an entrepreneurial firm changing the world through its Pay-As-You-Go platform. It provides a comparative analysis of the two companies, highlighting their shared mission to provide electricity to rural areas and improve the economic conditions of their customers. The report concludes by emphasizing the impact of these companies in providing sustainable energy solutions to underserved populations and their role in improving living standards. References for the report are also provided.

SMALL BUSINESS
MANAGEMENT

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Contents
Introduction...........................................................................................................................................1
Question 1.............................................................................................................................................1
Question 2.............................................................................................................................................1
Question 3.............................................................................................................................................2
Conclusion.............................................................................................................................................3
References.............................................................................................................................................4

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Introduction
There are many companies that are transforming the world through their entrepreneurial
activities. Some of these entrepreneurs have faced similar things in their past. Energy is one
of the major concerns of the modern day society and availing it for the poor at cheaper rates
is another major concern of the company. This report is going to discuss the story of d.light
and one another company that has also changed the world with their entrepreneurial
innovations.
Question 1
Out of the six reasons highlighted in the case the d.light was highly successful in their
business plan competition because of the big markets that was available with them. There is
huge marketplace for the people who are living without electricity in different parts of the
world. This was also a good option in the areas where there is lesser amount of electricity
supply. This is not allowing their standard of living to get developed and is also having
impact on their growth within the society. Apart from this these poor people have to pay
higher for the fuels such as kerosene and others which also results in health related issues.
Since this company had an alternative source of electricity to offer hence they have large
scope of making higher sales. Because of this, there are large numbers of investors that are
ready to do investment in this project of the company. In the countries like India and the
countries of Africa there is abundant sunshine hence people are also attracted to product as an
alternative to the conventional energy. The example of it was seen in Rural India where the
average time of the study of student was increased by two hours because they don’t have to
let dependent on the sunlight and they can learn even at night (d.lightsolar, 2019).
Question 2
The marketing strategy that could be adopted for this is lower pricing strategy. By keeping
prices at the lower side, it can be ensured that most of the people can be targeted. As these
people not have enough financial resources hence they will not be able to purchase higher
priced products. The marketing needs to be at the local levels with the help of distributors of
the lights and electricity items. The major reason for selecting this marketing strategy is the
fact that these people who need such lights do not have access to the digital media or the

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conventional marketing tools such as newspapers, televisions. Door-to-door marketing can be
helpful in such kind of product so as to spread awareness. Word-of-mouth marketing in the
local marketing can also be effective for this product.
For educating people in the remote areas about the existence of the product the method that
can be adopted is constructing a local teams or sales representatives who will go door to door
and educate people about the product. They will also educate people about the benefit of
using this device. Company can also take the help of the local authorities and work under the
public private partnership model so as to reach out to the people deprived of electricity. At
the local gathering spots there can be installation of stalls where the information about this
product can be given. It is seen that educating children in collaboration with teachers have
also been successful as they motivate their parents to buy such products.
Question 3
Among the different entrepreneurial firm that is changing the world the company that can be
shown as an example is M-Kopa. It is a Kenyan solar energy firm which is headquartered in
the Nairobi. This firm is known for its pioneer and built one of the world’s most progressive
Pay-As-You-Go platforms to enhance millions of lives in Eastern Africa. This firm was
launched commercially in 2012. Till March 2019, over 700,000 businesses and homes across
are being empowered by this firm’s connected technology and consumer finance. This firm is
offering Pay-As-You-Go solar home system in which payments are collected in smaller
amounts with the help of mobile money or digital payments instead of taking collaterals. This
firm utilises embedded technologies so as to remotely control the system. This is changing
the lives of people as when the payments are late the system can be disabled till when the
consumer catches up.
This firm says that energy is a vital ingredient in the economic inclusion and this technology
is saving an average of US$183 annually per family (M-Kopa, 2019). With the help of IOT
system and telemetry along with flexible financing model which allows low-income
households to finance life-changing products and services. This company’s history started
with a fact that in the Eastern Africa there are many people who are not able to pay money on
time and the bill starts to increase and sometimes it increases so much that they have to put
some collateral for paying the bills. This model for business allows people to improve their

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economic condition as they will receive the electricity when they are able to pay the prices of
the electricity.
This firm’s story is similar to the d.light. Both the company’s mission is to provide electricity
to the rural people who are not able to purchase the electricity that is given by the
government and other profitable organisations. Both have the aim to improve the economic
condition of the people living in the rural areas. These two entrepreneurial ideas have the aim
to enhance the reach of electricity to as many people as possible. d.light is focused towards
developing an alternative source of energy while M-cope is trying to lower the cost of
electricity that is provided to the people. Other similarity between the two companies is that
both use solar power technologies to provide electricity of the people. Both the company has
the idea that there is a danger in using the kerosene lamps to light homes both in terms of
health and financial terms.
Conclusion
A conclusion can be drawn from the report that companies like d.light which has developed
new technologies are providing electricity to large numbers of rural areas in the world. The
major reason for their success that the numbers of people who actually require such
conventional energy are large in numbers hence the chances of increasing higher sales
enhance. Similar thing is done by M-Kopa who is trying to sell electricity to the people at
affordable rates.

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References
d.lightsolar, 2019. Backgroup. [Online] Available at: https://www.dlight.com/about/.
[Accessed on 14th July 2019]
M-Kopa, 2019. M-Kopa Solar. [Online] Available at: http://www.m-kopa.com/. [Accessed
on 14th July 2019]