AKPSI Case Competition
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Transcript of AKPSI Case Competition
![Page 1: AKPSI Case Competition](https://reader033.fdocuments.net/reader033/viewer/2022042520/589e9d411a28ab9f728b69ff/html5/thumbnails/1.jpg)
Recap
Cornering the Market: Financial Services for the Underdeveloped World
Juliana Diatezua || Shriya Ganti || Jeanne
Garner ReplicabilityFlexibilityExpansionAudiencePrioritiesAgenda
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Agenda
RecapReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
1. Priorities
2. Audience
3. Flexibility
4. Expansion
5. Replicability
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Recap
There are three main questions to answer when entering the industry:
1. What type of demographic are you trying to capture?
3. What is your intent for expansion?
2. What are your goals for long-term independence?
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
Audience
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
The MPESA model shows that a too diverse market creates needless cost.
Dollars Lost/Year transporting cash
Collective Days Lost/Year transporting cash
Dollars Lost/Year for travel fare expenses$3.45 million
115,000
$1,500-$3,900
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
Target demographic should be “Bottom of the Pyramid” and lower-middle class consumers.
Why you should choose a B.O.P target demographic
Differentiates being the “only” versus the
“preferred” service
The consumer base is large and relatively
untapped
Company success creates long term reliance
from customers
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
2 billion people are without financial service access
49.5% mobile penetration in undeveloped countries over 20 years
4.0 billion mobile subscribers worldwide
4.2 billion worldwide population at the BOP
Information to consider
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RecapReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
Flexibility
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Recap
Choose a money-transfer service model over a mobile banking model.
A money-transfer model identifies the needs of the
consumer base
A money transfer service promotes independence from third
parties A money transfer service reduces overhead
Mobile banking over-estimates the consumer’s needs
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
Make mobile networks the main partners of your company.
Benefits of aligning with mobile networks
Avoid instability related to banking services
SIM Cards can be used as a method of identification
Projected increase in mobile phone use makes all consumers
accessible
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
Avoid aligning your company with a banking service to avoid unnecessary instability.
Success is dependent on aligning with first tier banks
Business model becomes heavily reliant on external variables
Why to avoid bank partnerships
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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RecapReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
Expansion
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Recap
Aim for quick expansion in order to create traction among consumers.
Models for quick expansion
Cut costs by hiring middlemen seasonally
Pay low wages and diminish overhead; increase this as company grows
Establish a grassroots business model
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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Recap
Sacrifices made for quick expansion will rectify themselves in the long run.
Adjust model around seasonal activity
Base service on SIM Cards
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
Accrue debt
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Recap
Expanding internationally should be done with extensive knowledge of the new nation.
Required research aspects going forward
A country’s culture should influence the scale of the
expansion model Countries targeted for expansion must have similar economic
atmosphere
New country’s BOP should redefine the target population
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
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RecapReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
Replicability
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Recap
Your business model should have low levels of external specification.
A model based around those of lower income can be tailored
more easily
Low levels of initial dependence allow company model to
persist
ReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
Avoiding reliance on external factors avoids later
restructuring
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Recap
RecapReplicabilityExpansionFlexibilityAudiencePrioritiesAgenda
1. Establishment of a niche is key
2. The ideal consumer has few alternatives3. The ideal model reduces variable dependence 4. For expansion, the ideal model sacrifices short term gain5. The ideal model requires little restructuring to replicate