Abstract

This case explores the business model innovation of FreeWater Inc, (FreeWater) whereby it distributes water to customers free of cost in eco-friendly aluminum bottles and paper cartons. The case describes the B2B and B2C models adopted by the company. Founded in 2020 by Josh Cliffords (Cliffords) along with his wife, FreeWater was launched with the idea of distributing a product that was free for consumers yet helped the environment. Functioning just like digital platforms such as Google, Instagram, or YouTube but in a physical format, FreeWater created a new marketing channel for companies to promote their products directly through its beverage packaging. The case also touches upon how the startup integrated sustainability into its business model despite challenges relating to logistics and the supply chain and limited funding as well as over-reliance on revenues from social media. FreeWater donated 10 cents from every bottle or carton of water it distributed to charitable initiatives aimed at building water wells for communities in East Africa, thus satisfying its sustainability goals.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Explain the concept of business model innovation.
• Discuss and debate what type of business model innovation FreeWater has adopted.
• Analyze the challenges Cliffords faced at FreeWater.
• Formulate strategies that FreeWater can adopt to scale as well as diversify its product portfolio.

Keywords

Business Model Innovation; Product Pricing; Advertising; Entrepreneurship; Packaging; Sustainability,Social Media; Supply chain; Free product revolution; Social responsibility; Social impact