Value Chain Analysis KDA Manufacture at $22/stove and sell to micro-entrepreneur at $32/stove Manufacture pellets at $2/sack and sell to micro-entrepreneur at $3/sack Costs $1,000 per year to manage each micro-entrepreneur Micro-entrepreneur Already have small shops selling other products besides the KDA stoves, but need to hire an additional employee for delivery Buy stoves at $32/stove and sell at $38 Buy fuel pellets at $3 and sell at $5/sack Customer Buy stove at $38 Save $0.10 per pound of pellets purchased over cost of firewood Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch

Value Chain Analysis Beneficiaries Process “c”: e.g., Product Sales Process “z”: e.g., Product Installation/Training Process “y”: e.g., Product Delivery Process “b”: e.g., Product Marketing Process “x”: e.g., Product Manufacturing Process “a”: e.g., Product Development Process “w”: e.g. Supplier Management Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch

Value Proposition Value Chain Analysis Federal Government Budget & Energy Saving Programs Highest quality - ½ price 4x faster deployment $ Municipalities Local Government $ Local Government Installs Act/if High Quality Design Low Cost Housing and Panels Manufacturing With Partner SUPPLIERS Quality LED’s Electronic components Enclosures Packaging $ Local Distributor Local contractor Installs $ $ $ Requirement: Lighting is a basic need to support economic development in underserved communities : slums and remote rural locations: Security Extended working hours Road Safety Product flow Monetary flow Service 3 Creating Demand Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch