Abstract

This case is about Roundabout Outdoor Pty Ltd. (RO), a South African for-profit social venture. RO sought to provide a business solution for the water problem facing various communities in Africa in association with its non-profit partner, PlayPumps International (PI). Its product was a water system - a child’s roundabout fitted with a pump that could pump water as it turned. RO installed and maintained these PlayPumps in various parts of Southern Africa. The funds for installing the PlayPumps were arranged by PI. By mid-2009, more than 1,500 PlayPumps had been installed in six countries in Southern Africa. However, the organization started facing various challenges in scaling up further. In addition to problems related to funding, the enterprise had also started attracting criticism from some experts and rival water charities who claimed that the PlayPumps were unsustainable and dismissed PI’s efforts as a marketing gimmick

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the business model adopted by Roundabout Outdoor in association with PlayPumps International, to cater to the Bottom of the Pyramid (BoP) population in certain African countries.
• Understand the concept of developing and emerging markets and the BoP segment.
• Understand the issues and challenges in catering to the needs of the BoP population.
• Understand how, in regions like Africa and other developing countries, companies can adopt hybrid business models to address social problems while still making a profit.
• Study the reasons for the success of RO and PI, and the criticism it was attracting, and explore ways in which the venture can be scaled up further in Africa and beyond

Keywords

Business models, Hybrid business models, Emerging markets, Bottom of the Pyramid, Innovation, Business solution for social problem, Social Innovation, Social entrepreneurship