Assistant professor of the Faculty of Administration at Universidad de Los Andes.
This case describes how Codensa, an electricity company in Bogotá and Cundinamarca (Colombia), developed an easy-access consumer credit business model for low-income populations leveraged by the cost structure of its core business. Codensa offered consumer credit to low income populations through the Codensa Hogar business unit, by linking together a value chain of large retailers […]know more
This case can be used in undergraduate, graduate and executive education marketing and social responsibility courses. On marketing courses, it is a useful tool for analyzing elements of strategic marketing and understanding the relationship between proposals, customers and value networks. It also allows for discussion on the fragility of a company’s value proposition when entering new segments of the market, and looking at how a commercial growth decision can strengthen or risk an
organization’s mission and values. By analyzing Alcagüete’s 1×1 model, cause-related marketing can be explained and options analyzed for ensuring the traceability of social contributions that are linked to product sales.
On a social responsibility course, emphasis can be made on how private companies form alliances with social organizations to generate social benefits and, at the same time, differentiate their brands. In addition, the case gives exposure to hybrid business models and B Corporations and the challenges they face when trying to simultaneously address social, environmental and economic aspects. A key topic for this type of company is how to scale-up the business without sacrificing its
socio-environmental value proposition.