Harish Hande founded SELCO in 1995 to serve underprivileged homes without power. Hande believes solar energy’s decentralised manner of distributing electricity may help India’s economy and electrical infrastructure.
As SELCO began operations, Hande understood solar solutions must be customised for each client. Rural homeowners needed distinct technological and financial arrangements than urban hawkers, midwives, or schools. The firm created new solar energy solutions for unpractical market niches.
The intensive design procedure slowed SELCO’s expansion. By the conclusion of its first decade, SELCO had electrified 80,000 houses, micro-enterprises, and community facilities, making it one of the world’s largest PV suppliers. In 2001, SELCO broke even and earned tiny profits for many years, culminating at $88,380 in 2005.
Internal and external pressure pushed SELCO to develop quicker and reach more clients. This pressure led to a failed franchising strategy and angry investors during SELCO’s next phase of operations. By 2009, SELCO had solved several issues and operations were stabilised. The corporation started an innovation lab to institutionalise its design process and considered growth ambitions. How can SELCO expand while avoiding past mistakes?
Educators
The example allows educators to explore the strategy of a corporation with a social mission and a focus on innovation. SELCO’s growth possibilities include a variety of challenging tactics. The case demands integrating marketing, finance, and HR with design thinking and industrial product design.
Students must study SELCO’s 15-year history to comprehend its future. Given the considerable corporate and stakeholder information, teachers may frame the study as a group exercise. Alternately, educators might utilise the raw case structure to focus on certain areas of SELCO’s history. The case offers excellent discussion material on:
- Social interventions in developing markets: advantages and cons
- Creating a business strategy for low-income clients;
- Creating a financial and governance structure for a social enterprise;
- Customizing product and service design to energise low-income people
- Institutionalizing an ad hoc, yet crucial design process.
This pressure led to a failed franchising strategy and angry investors during SELCO’s next phase of operations. By 2009, SELCO had solved several issues and operations were stabilised. The corporation started an innovation lab to institutionalise its design process and considered growth ambitions. How can SELCO expand while avoiding past mistakes?
References
Yale School of Management videotaped 15 hours of interviews, marketplace interactions, and solar panel installations for this case study. The case team edited films, produced introductions, obtained SELCO documentation, and found online links. The case has 25 web pages with 13,000 lines of text, 25 two- to four-minute videos, and links to over 60 documents/exhibits.
Both instructors and students struggle to manage so much material. One pedagogical method is to focus on one element of SELCO’s functioning and designate a section of the website for discussion. The paragraphs below cover enterprise expansion resources and other issues for class discussion.
This pressure led to a failed franchising strategy and angry investors during SELCO’s next phase of operations. By 2009, SELCO had solved several issues and operations were stabilised. The corporation started an innovation lab to institutionalise its design process and considered growth ambitions. How can SELCO expand while avoiding past mistakes?
Expanding
Most of the case information relates to SELCO’s growth. Instructors may wish to base the topic of growth on SELCO’s present business strategy, brand, and macroeconomic reasons. Instructors may also question SELCO’s past quick growth strategy, and franchising dealerships. As Hande writes, this endeavour nearly collapsed the corporation, disrupting operations and mission. Students debate several expansion options. SELCO’s management is interviewed about expanding geographically, expanding product lines, and serving impoverished populations. Students often provide options.
Hande believes SELCO should be a for-profit company in this case. The case describes how SELCO has struggled to integrate its investors’ interests with its social goal. Many entrepreneurs with a humanitarian aim wonder whether to establish a social venture as a business or charity. The example allows educators to address this issue by walking students through SELCO’s challenges. When solar panel supply dropped, investors pressured SELCO’s management.
The instance demonstrates India’s fast growth and wealth gap. India’s electrical grid hinders expansion. Unreliable service even for grid users. Nearly 40% of India’s population (over 400 million people) has no connection to the grid and uses polluting energy (like kerosene). But would Hande’s energy solution help those without access? The example compares soft (decentralised) and hard (centralised) energy techniques.
Can SELCO’s soft path solution assist India’s poor, or is solar a stopgap? The instance compares rural electrification during the Depression. Does SELCO’s gradual expansion restrict its influence, even if soft path solutions are viable? SELCO’s strategy depends on India’s growth. How can SELCO access global PV markets?
Business modelling
SELCO targets low-income individuals and companies. This group is difficult to serve, and SELCO’s goods (solar panels, batteries, inverters) are expensive. The case describes SELCO’s finances, personnel recruiting, marketing, and consumer financing, service and product development. As the instance shows, SELCO’s business model combines several factors.
Hande believes SELCO should be a for-profit company in this case. The case describes how SELCO has struggled to integrate its investors’ interests with its social goal. Many entrepreneurs with a humanitarian aim wonder whether to establish a social venture as a business or charity. The example allows educators to address this issue by walking students through SELCO’s challenges. When solar panel supply dropped, investors pressured SELCO’s management.
SELCO’s expertise in delivering solar power may be mined for lessons on how to acquire, utilise, and maintain a product. Hande and his staff have shown this methodology works, so educators may explain the company’s strategy. How can SELCO improve? Could marketing, financing, or service be redesigned? What is its product development strategy? You can also read about Does Religion Provide Positive Benefits To Our Lives.
Financial governance
Hande believes SELCO should be a for-profit company in this case. The case describes how SELCO has struggled to integrate its investors’ interests with its social goal. Many entrepreneurs with a humanitarian aim wonder whether to establish a social venture as a business or charity.
The example allows educators to address this issue by walking students through SELCO’s challenges. When solar panel supply dropped, investors pressured SELCO’s management. The crisis was handled by “cramming down” current investors and recruiting new, more aligned capital. Instructors may ask if Hande’s new financing structure is a typical for-profit firm or a hybrid. How has Hande’s governance structure affected SELCO’s future decisions?
Product design
The case highlights SELCO’s creative product design through text, photographs, and videos. To personalise solar technology for low-income consumers, the business redesigned its customers’ value chain, reframed assumptions about energy usage, and redesigned bank finance products. Students may learn about designing for new markets via the case site. And this research is done by our assignment editing helper, Eddie Broke.
Based on SELCO’s experience with sewing centres, professors may question students if rethinking energy needs for western-designed equipment or machines can assist Indian enterprises or households embrace sustainable energy sources. Based on SELCO’s success in adapting miners’ helmets for midwives and flower pickers, teachers may explore whether there are other ways to adapt common designs to new purposes to make sustainable energy available to more Indians.
Design institution
SELCO developed an innovation unit in 2007. The department works with Hande and senior management to develop new sustainable energy solutions, including those outside SELCO’s solar offers. The innovation department provides possibilities and problems. The new group formed technology-based relationships with Indian and foreign colleges, institutes, and enterprises. Apart from that, you can also reach us for assignment help in Australia.
Hande believes SELCO should be a for-profit company in this case. The case describes how SELCO has struggled to integrate its investors’ interests with its social goal. Many entrepreneurs with a humanitarian aim wonder whether to establish a social venture as a business or charity. The example allows educators to address this issue by walking students through SELCO’s challenges. When solar panel supply dropped, investors pressured SELCO’s management.
This cooperation might help the underprivileged with their energy demands, boosting their quality of life and income-generating potential. SELCO’s innovative success comes from its technicians and managers’ field expertise. Centralizing innovation might hinder idea flow.