...from VCs such as TLcom, for two main reasons 1. Large scale of funding that Movirtu needs to achieve its market expansion and growth targets 2. Synergies arising from fit between Movirtu’s aspirations and the VCs’ expertise. Movirtu and the Cloud Phone Market Movirtu's vision is to unlock the value of mobile communication for a market of 4 billion bottom-of-the-pyramid (BoP) population spread across Asia, Africa and South America. As a pioneer in the field of device-less cloud phones Movirtu has created an innovative business model by setting up strategic partnerships with mobile network operators (MNOs), employing rural population, and engaging small telecom entrepreneurs, while sharing value with all these participants in Movirtu's value chain. Scope We estimate that by entering into a typical sub-Saharan African country, Movirtu can target revenues of more than $2MM over 3 years (market penetration of 3 to 8 percent over three years). Movirtu plans to enter at least 10-12 such regions by 20133. A directional estimate indicates that Movirtu can turn a profit of $3MM within 3 years. In order to meet these expansion goals and become self-sustaining, we estimate that Movirtu needs an investment of $4-7MM. Synergies Traditional VCs’ would help Movirtu in the following areas: * Build strategic partnerships with MNOs * Drive operational and financial efficiencies in Movirtu * Provide legal guidance * Build relationships with governments * Add...
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...Brief Evaluation Form Note: You don’t have to answer the guiding questions verbatim, use them to prompt your thinking. You do need to suggest an action/recommendation. See me if you have any questions. For those who want more guidance, see below. 3 = Very Good/Above average 2 = Good 1 = Poor/Below Average Innovation at the Bottom of the Pyramid Impacts Comfort As a common practice in the poor countries, sharing mobile phones allows many of these customers to use their own SIM card and switch it in and out when borrowing a mobile device. However, this may be inconvenient as it is not secured and sometimes costly. Nigel Waller, founder of Movirtu, a British start-up, developed cloud software for people too poor to own their own mobile phone. The cloud phone offers a cheaper, more convenient alternative because it gives individuals who cannot buy a handset their own phone numbers and mobile services. This model presents mutual advantages for both the poor as well as the start-up. In other words, their service is priced for base-of-the-pyramid customers and the mobile network carriers get a piece of the action. This model is a demonstration that innovation can spur ventures that sell services aimed at the poor in a way that creates value at the base of the pyramid as well as to the investors. The business model implemented by Morvitu provides an opportunity to assess how effective...
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...reference 1-429-140 May 11, 2012 How to Write a Business Case Study A business case study confronts students with a real-life dilemma and engages all their abilities to solve its challenges. In presenting a specific business or policy situation—one that does not have an obvious solution—the case provides information for classroom discussion and other study. A good case study stimulates an educated conversation and the building of business knowledge. The best case studies are learning-centered, not instructor-centered. Details describing the differences between the two can be found in Exhibit 1. A student reading the case should be provided with the information needed to make good decisions about the case, or the ability to find the information if that is a learning objective. Information critical to solving the case should never be contained exclusively in the case’s teaching note, because doing so puts the instructor in the center of the learning, and leads to frustrated students. Cases should satisfy professors and students as well as the businesses, organizations, and people featured in the cases. Although these interests might appear in conflict, a case that is written with fairness and intelligence will ultimately receive the respect of all parties. The best cases have several structural characteristics in common including a protagonist, specific time frame, and use of past tense. An author who becomes experienced in case writing may deviate from this pattern, but doing...
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