Algramo Case Study

Qiang wang

201605040

1 Yes, Algramo should expand its business internationally and into developing markets. Algramo is a business whose goal is to enhance the lifestyles of those living listed below the hardship line, so this method more acceptability for the poor people. In the developing country, it has acquired the more poverty-stricken rural population, people who with less income, who have trouble to eat have to eat at the end of the day, they find one or the other alternative to find food. So, providing food to these people with a vary less profit margin is advantage to them where they afford quality food at reasonable rates. for the poor people, particularly those living in poverty-stricken areas, the ghetto tax is a heavy burden that they can not afford. People with low incomes pay higher prices for goods. This means many low-income families are unable to buy staple foods in any great volume. This results in them having to buy small amounts, while paying much more than they would for larger quantities. They has the strong desire for the cheaper basic commodities. For the developing country, rural public traffic system is in the immaturity that means the poor people are loath to purchase the goods in the supermarket where far away from their home. The “ poverty opportunity” also exists in other developed country, the requirement of the necessities from the low income customers increased rapidly, and the operation process of the supply has changed. Compare with Santiago, Chile, the developing country almost have the social system an, local markets, and capital markets for the poor people, so the Algramo can keep their core value propositions constant. And easy to adapt their business model. It creates less waste and requires less money than traditional shopping methods.But for the developed country, they may not get the Ghetto Tax problem, and it has the mature traffic system which not cost too much money. They can purchase the product in the large formats and volumes in the same price.

 2 Yes, it should be expanded to other products, Now, it provides only dry goods, like rice, beans, lentils, sugar which is the basic necessities commodities. It can expand to sell liquid ingredients like cooking oil or soap. The machine will sell all its ingredients by weight, so people can buy exactly the amounts they need or can afford. And also for the basic medical products, like the cold medication, anti-inflammatory drug, which can be divided into the small packages, when the people require it , they can obtain it. People in the slum who are not reluctant to go to the hospital or medicamentarius, if they have a minor illness, a box of medicine is too expensive for them, so we can put the small packs of the medication in machine to lower the cost which can afford by the poor people. I think it can improve the medical service condition. But just only for the minor illness. Small packages more affordability to the people.