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Small Energy-saving Steps

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International marketing questions

Small Energy-saving Steps can make Big Strides

1. Can a firm such as Envirofit International make a profit from selling $5 stoves to poor people?

2. What should be the relative emphasis on low tech solutions vs. leading edge technology solutions in selling to the bottom of the pyramid?

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Ethical dilemmas abound in international marketing, and firms need to incorporate ethical values from the top down, as part of the corporate culture, and in their code of conduct, in order to inculcate ethical behavior. Such an ethical lens can guide the firm when it attempts to market to the "Bottom of the Pyramid", the two-thirds of the world's population with incomes under $2000 per year. Microfinance is an example of an approach to addressing the consumption needs of the world's poor. The International Design Summit at MIT, and Cemex's Patrimonio program, drawing on microfinance principles, are two examples of how marketing programs can be ethical and meet the needs of the world's lower income populations.

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Small Energy-saving Steps can make Big Strides

1. Can a firm such as Envirofit International make a profit from selling $5 stoves to poor people?

A firm such as Envirofit International may not make profit from selling $5 stoves to poor people. The stoves are priced at $20. In addition, the case mentions that selling 60 million stoves would cost $300 million. This indicates that the cost of one stove may be $5 (price realized) plus $300/60=$5 (cost incurred) = $10. In this context it is important.

The strategy of Envirofit International is to design low cost stoves low pollution stoves for use in the developing countries. Even through Envirofit International is a not for profit ...

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