SR article

Revenue Streams

For what value are our customers willing to pay? How would they prefer to pay?

The price that the locals are going to pay is going to be lower than the price nationally and internationally. The oil is going to be sold as a luxury product in wealthier parts of the world. These customers will pay wireless and thus the villagers need to open a bank account so they are able to receive the payments. If the oil is also going to be sold to things like hotels, they are also going to pay more.

Handling different prices for different customer segments makes sure that people that are using the lemongrass oil for their necessary daily lives can buy it relatively cheap. People that are only buying the oil as a luxury product and relatively have a lot more money also pay to ensure that the business can proceed and the locals do not have to pay as much for the product.

 

 

Ecological revenues

 

As said in the article ‘beyond greening: strategies for a sustainable world’ by Stuart L. Hart [1], the total environmental burden created by human activity is a function of three factors: population, affluence and technology. The first two are not in our power to change; however the last one we can do something about. With this technology the process of distillating the lemongrass becomes entirely green. Due to this technology there won’t be need for any firewood, which means there is no CO2 emission and this will also result in preserving the forest and the animals living in it.

 

Social revenues

 

The whole purpose of this project is to create jobs and income for the people from Valaramkunnu. If the project turns out to be profitable and the villagers generate a steady income, it could have great benefits for the community. The money earned can be invested in better facilities, like schools, sanitary and roads. It probably won’t have a great impact on bigger scale, but it can help the village locally.

 

 References:

[1] Hart, S.L. (1996), Beyond Greening: strategies for a sustainable world, Harvard Business Review

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