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LifeStraw Case Analysis_Group 8

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Andy Winslow

on 28 March 2013

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Transcript of LifeStraw Case Analysis_Group 8

1957: VF was founded as a work wear & uniform manufacturing business Made wool blankets & sold to refugee camps 1994: VF started to drift from profit driven company to a social enterprise Creation of insecticide infused mosquito nets: ‘Permanet’ 1998: VF & Carter Center begin to work together 2005: Creation of LifeStraw 2008: Creation
of the Lifestraw Family Vestergaard Frandsen is a European based international company that specializes in complex emergency response and disease control products

-Mission: “Innovation in disease control textiles is fuelled by our humanitarian entrepreneurship to create a healthier planet”

-Values: The values of VF include being a passioneering, innovative challenger with a quick speed of response while delivering with precision Overview Their commitment addresses the following MDGs:

-Reducing child mortality (Goal 4),

-Improving maternal health (Goal 5)

-Combating malaria, HIV/AIDS, and other diseases (Goal 6) MDG's -Mikkel Vestergaard Frandsen is the CEO and owner of Vestergaard Frandsen
-He took up the leadership of the company in 1997
-Mikkel’s personal interest in developing nations began at 19 years ago when he moved to Africa
-He has also lived and worked in Nairobi, Kenya and New Delhi, India. Mikkel Vestergaard A true social entrepreneur

Interesting facts about the Lifestraw & the Lifestraw family ! It is capable of:

- filtering at least 1,000 L of contaminated water
- removing minimum 99.9999% of waterborne
bacteria
- removing minimum 99.9% of waterborne protozoan parasites
- reducing turbidity by filtering particles of approximately 0.2 microns
- does not contain any chemicals, and does not require any electrical
power, batteries or replacement parts. Product Features And Basic Facts
-Time Magazine in November 2005 reported LifeStraw as
‘Best Invention of 2005’

-Reader’s Digest in July 2006 defines it as the
‘Europe’s Best Invention’

-Forbes Magazine in February 2006 classifies it as:
' One of the Ten Things That Will Change The Way We Live' Awards And Accolades Business Model Analysis Social impact theory-
To provide those in developing countries who have no clean water an easy and economical method of purification free of charge.

Operating model-
Sell LifeStraws at manufacturing price to NGOs who then disperse the products to those in need Resource Strategy 1.Donations

2. Subsidized products

3.Carbon credit trading Vestergaard Fransen LifeStraw NGOs Children Donation Campaigns Vestergaard Fransen LifeStraw NGOs Children Donation Campaigns Military,
Campers,
Public Use Vestergaard Fransen LifeStraw NGOs Children Donation Campaigns Military,
Campers,
Public Use NGOs Families Donation Campaigns LifeStraw Family Direct donation from VF to Families Accumulation of Carbon Credits Carbon Credit Trading 877,505 units. ~$3 million worth of product 9.5 gal 15 gal 11.6 gal 18.5 gal Strengths Easy to carry
Minimal maintenance requirement
“Carbon For Water” program as an alternative means of sustainabilityAutomatically stops after filtering 1,000L of water Strong partnership for marketing & business development
Good for: short and middle term. - Focus on water availability
- LifeStraw only works if water is present
- Average distance for Water: 4 miles
Possible solutions?
-Humidity traps
-Wells
-Pipes
-Develop and teach efficient water use

-Financial reform
- Donars are an unstable resource
- What happened when Carbon for water is over Weaknesses Recommendations Not meant for long term
Not affordable for poor people. It costs about 30-40$ for one lifestraw unit.
Not designed to remove biological and turbidity Opportunities · Call for water as a basic human rights
· Clean water source is limited, but unclean water can be filtered
· Growing demand of mobile water filter Problems with these initiatives :
Threats Financial Sustainability: NGO's purchase with their donation money

Free distribution to poor people de-motivate them to purchase LifeStraw.
High competition of low-cost water purification system Social Return On Investment Laboratory test results show that LifeStraw is successful to:
-reduce the mesophilic aerobic, total coliforms and E. Coli by 100%
- it meets the EPA requirements of LOG 6 reduction for bacteria and LOG 3 reduction for protozoan parasites up to 1600L or approximately 160% of design life

-Filters proven to be the most effective method for preventing diarrhea with a 63 reduction rate. SWOT Analysis In 1998 Vestergaard Frandsen was approached
by the Carter Center to help them eradicate
a worm disease which had affected 3
million people.

As a response to this Vestergaard Frandsen produced a product composed of a plastic tube with a mesh filter over the top that was fine enough to catch the eggs


In the first six months accumulated 1.4 million carbon credits The concept Before LifeStraw, most families purified water by boiling it over wood fires. Carbon For Water put LifeStraw Families in ~900,000 homes giving 4.5 million people clean water Time Magazine's invention of the year Following the leadership of Mikkel Vestergaard Frandsen, VF expanded upon their simple filter and in 2005 created LifeStraw to combat a whole array of water bacterial diseases. In 2008 they created the LifeStraw Family. Lifestraw was successful because it was portable, cheap and easy to use. Families in Africa that actually needed to use it and couldn’t afford the 20 dollars made no payment at all thanks to donors paying the manufacturing and operational costs Interventions 1. High Costs:
SteriPen is $59.95
Zerowater is $59.99
Katadyn Pocket is $369.95
2. Big in size and not portable
3. Use of dangerous chemicals
4. Require resources that are not always
easily available. Case Analysis of LifeStraw by Vestergaard Frandsen Business Model Social impact theory-
To provide those in developing countries who have no clean water an easy and economical method of purification free of charge.
Operating model-
Sell LifeStraws at manufacturing price to NGOs who then disperse the products to those in need Resource Strategy Vestergaard Frandsen Vestergaard Frandsen Vestergaard Frandsen Donation Subsidy Credit Trading Thank You!
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