Abstract

The case examines the business model of Living Goods, the US-based non-profit organization. Started by Chris Slaughter, Living Goods’ first venture was in Uganda, where it partnered with a microfinance organization BRAC to provide basic healthcare services to the poor, in a sustainable manner. Living Goods selected few women from BRAC’s microfinance programs to appoint them as Community Health Promoters (CHPs). They were given small loan from BRAC to procure essential medicines and other products. Living Goods trained and helped CHPs in selling medicines for a small profit. This model addressed several issues like non-availability of healthcare, spurious medicines, high costs of medicines and lost productivity. At the same time, it helped CHPs engage in income generating activities. To make the model viable, Living Goods encouraged CHPs to sell other products like soaps, skin lotions, shampoos, etc. Living Goods also distributed fuel efficient stoves, solar lanterns and other innovative products through the CHPs.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the business model of Living Goods
• Evaluate the sustainability of the company’s business model
• Examine the advantages and disadvantages of Living Goods’ business model and its future potential in Uganda
• and Critically analyze if the Living Goods’ business model is scalable and replicable in other developing countries.

Keywords

Living Goods, Microfinance, Responsibility Pioneers, Sustainability, Triple Bottomline Approach, Direct Marketing Model, Business Model, BRAC, Community Health Promoters, Avon Products, Rural Communities, Health Distribution Systems, Sustainable Distribution Platforms, Non-profit Social Enterprise