Outline a background of the case below. (Please note that this is not an essay question.)

In June 2011, Steve Katsaros, founder and CEO of Nokero, was contemplating how to build on his company's accomplishments during the last 12 months. Nokero, a marketer of solar bulbs, has emerged as a successful born-global social enterprise.

Transcribed Image Text:CHAPTER 17 Global Manufacturing and Supply-Chain Management 70 Boys at an orphanage in Kisii, Kenya, use the Nokera solar light to read at night. While the brightness of the N200 light is not the same as traditional LED lighting, it's brightness is five times brighter than that of a kerosene lantern, which is commonly used in developin countries where electricity is scarce or nonexistent. Source: Institute for Intermational Business the past year, Nokero had sold more than 150,000 solar light bulbs to over 90 countries. The company has also started to attract significant media attention. CNN, The New York Times (online), The Washington Post, Fast Company, Popular Mechanics, Popular Science, The Denver Post, and Engadget, to name just a few, have featured Nokero's story of doing well by doing good as a provider of environmentally friendly solar lighting to the world's poor. While Katsaros was very pleased with his company's overall performance during the past year, he was concerned with three fundamental questions. First, what market segments should the company focus on for profitable growth? Several opportunities had propelled Nokero's sales in recent months. The company has made tens of thousands of dollars in small and sample order sales through the company's website from thousands of customers in North America and abroad. Additionally, Nokero has entered into or is in the process of signing distributorship agreements in about a dozen countries. For example, Nokero has en- gaged Westinghouse Lighting Corporation to distribute its solar lights in selected markets in Latin America. Finally, governments, international agencies, and non-governmental organi- zations have partnered with or approached Nokero on collaborative social programs relating to environmental sustainability, renewable energy, poverty alleviation, and disaster and relief projects. Katsaros wanted to make sure that Nokero explores the best pathways for growth in both the social enterprise sector and commercial channels. Second, where should the company grow? Currently, Nokero has pursued an opportu- nistic sales approach. The company's major customers are in diverse and dispersed loca- tions in Ghana, South Africa, Fiji, Mexico, India, Nigeria, Vanuatu, Haiti, Kenya, and other markets. Although practical business sense may dictate that international new ventures like Nokero focus on a few markets at a time, Katsaros was hesitant to pursue this approach since it contradicted the company's social mission of reaching out to as many people as possible that could benefit from Nokero's solar light bulbs. Third, how should Nokero manage its supply chain to support the company's growth? Katsaros understood that the company's future success hinges on its ability to reach its cus- tomers. In turn, this requires Nokero to address critical global supply chain issues effectively. How can the company serve different market and customer segments that are dispersed in many countries? How can Nokero bring down distribution costs to make the product more affordable to its customers? What should the company do to address the "last mile issue" of reaching customers in the most remote locations?
Transcribed Image Text:The Nokero Story Identifying the Opportunity Nokero (short for "No Kerosene") was established by Steve Katsaros in order to deyslop safe and environmentally friendly solar products that eliminated the need for harmf nd polluting fuels used for light and heat around the world and are affordable to the cust vers that need them. Katsaros saw a significant opportunity in developing a solar light prodt to replace kerosene and diesel lanterns. Katsaros described the opportunity as follows: In many parts of the world, non-electrified dwellings and workplaces are illuminate by kerosene or diesel lamps, candles or wood. There are electric options but most a t expensive, or fragile, or don't have replaceabie, rechargeable batteries. More than 1.6 billion people live without electricity. Of these, 704 million people are in South Asia, 550 million in sub-Saharan Africa, and 225 million in Southeast Asia. Many of these people live in remote areas and rely on kerosene and diesel-fueled lanterns for their lighting. By substituting solar light bulbs for kerosene lanterns, these people are able to re- coup their purchase price within a period of 12 days to two months, depending on market forces. Moreover, the replacement of kerosene lanterns with solar light bulbs generates sig- nificant environmental and health benefits. Every solar light that replaces a kerosene lantern saves three-quarters of a ton of CO2 emissions over the five-year lifetime According to the World Bank, daily exposure to emissions from kerosene lanterns is like smoking two packs of cigarettes per day the product. Inventing the Solution: The N100 and N200 Katsaros invented the first Nokero light bulb (the Nokero N100) on January 24, 2010, m ing a sketch of the idea on a notepad. Four days later, he filed a U.S. patent on the N10 4 was eventually granted in February 2011. Production on the light bulb commenced in 2010 and a new model, the N200, was introduced in November 2010. The Nokero solar light bulb is a small, lightweight, portable light, shaped like a bulb for easy identification. The bulb hangs in the sun to charge and can be hung or on its side at night. A "pivot" feature allows users to swivel the solar panel toward the sun to maximize charge capability. The bulb can be swiveled at night to direct light w needed. The LED lights are enclosed in the shatter-resistant bulb, do not get hot, and duce an even light. The Nokero solar light bulb is a small, lightweight, portable light, shaped like a light bulb for easy identification. The bulb hangs in the sun to charge and can be hung or laid on its side at night. A "pivot" feature allows users to swivel the solar panel toward the sun to maximize charge capability. Source: Iratitute for International Business

Question

Outline a background of the case below. (Please note that this is not an essay question.)

In June 2011, Steve Katsaros, founder and CEO of Nokero, was contemplating how to build on his company's accomplishments during the last 12 months. Nokero, a marketer of solar bulbs, has emerged as a successful born-global social enterprise.

CHAPTER 17
Global Manufacturing and Supply-Chain Management
70
Boys at an orphanage in
Kisii, Kenya, use the Nokera
solar light to read at night.
While the brightness of the
N200 light is not the same
as traditional LED lighting,
it's brightness is five times
brighter than that of a
kerosene lantern, which is
commonly used in developin
countries where electricity is
scarce or nonexistent.
Source: Institute for Intermational
Business
the past year, Nokero had sold more than 150,000 solar light bulbs to over 90 countries.
The company has also started to attract significant media attention. CNN, The New
York Times (online), The Washington Post, Fast Company, Popular Mechanics, Popular
Science, The Denver Post, and Engadget, to name just a few, have featured Nokero's
story of doing well by doing good as a provider of environmentally friendly solar lighting
to the world's poor.
While Katsaros was very pleased with his company's overall performance during the
past year, he was concerned with three fundamental questions. First, what market segments
should the company focus on for profitable growth? Several opportunities had propelled
Nokero's sales in recent months. The company has made tens of thousands of dollars in
small and sample order sales through the company's website from thousands of customers
in North America and abroad. Additionally, Nokero has entered into or is in the process of
signing distributorship agreements in about a dozen countries. For example, Nokero has en-
gaged Westinghouse Lighting Corporation to distribute its solar lights in selected markets in
Latin America. Finally, governments, international agencies, and non-governmental organi-
zations have partnered with or approached Nokero on collaborative social programs relating
to environmental sustainability, renewable energy, poverty alleviation, and disaster and relief
projects. Katsaros wanted to make sure that Nokero explores the best pathways for growth
in both the social enterprise sector and commercial channels.
Second, where should the company grow? Currently, Nokero has pursued an opportu-
nistic sales approach. The company's major customers are in diverse and dispersed loca-
tions in Ghana, South Africa, Fiji, Mexico, India, Nigeria, Vanuatu, Haiti, Kenya, and other
markets. Although practical business sense may dictate that international new ventures like
Nokero focus on a few markets at a time, Katsaros was hesitant to pursue this approach
since it contradicted the company's social mission of reaching out to as many people as
possible that could benefit from Nokero's solar light bulbs.
Third, how should Nokero manage its supply chain to support the company's growth?
Katsaros understood that the company's future success hinges on its ability to reach its cus-
tomers. In turn, this requires Nokero to address critical global supply chain issues effectively.
How can the company serve different market and customer segments that are dispersed in
many countries? How can Nokero bring down distribution costs to make the product more
affordable to its customers? What should the company do to address the "last mile issue" of
reaching customers in the most remote locations?

The Nokero Story
Identifying the Opportunity
Nokero (short for "No Kerosene") was established by Steve Katsaros in order to deyslop
safe and environmentally friendly solar products that eliminated the need for harmf nd
polluting fuels used for light and heat around the world and are affordable to the cust vers
that need them. Katsaros saw a significant opportunity in developing a solar light prodt to
replace kerosene and diesel lanterns. Katsaros described the opportunity as follows:
In many parts of the world, non-electrified dwellings and workplaces are illuminate
by kerosene or diesel lamps, candles or wood. There are electric options but most a t
expensive, or fragile, or don't have replaceabie, rechargeable batteries.
More than 1.6 billion people live without electricity. Of these, 704 million people are in
South Asia, 550 million in sub-Saharan Africa, and 225 million in Southeast Asia. Many of
these people live in remote areas and rely on kerosene and diesel-fueled lanterns for their
lighting. By substituting solar light bulbs for kerosene lanterns, these people are able to re-
coup their purchase price within a period of 12 days to two months, depending on market
forces. Moreover, the replacement of kerosene lanterns with solar light bulbs generates sig-
nificant environmental and health benefits. Every solar light that replaces a kerosene lantern
saves three-quarters of a ton of CO2 emissions over the five-year lifetime
According to the World Bank, daily exposure to emissions from kerosene lanterns is like
smoking two packs of cigarettes per day
the product.
Inventing the Solution: The N100 and N200
Katsaros invented the first Nokero light bulb (the Nokero N100) on January 24, 2010, m
ing a sketch of the idea on a notepad. Four days later, he filed a U.S. patent on the N10 4
was eventually granted in February 2011. Production on the light bulb commenced in
2010 and a new model, the N200, was introduced in November 2010.
The Nokero solar light bulb is a small, lightweight, portable light, shaped like a
bulb for easy identification. The bulb hangs in the sun to charge and can be hung or
on its side at night. A "pivot" feature allows users to swivel the solar panel toward the
sun to maximize charge capability. The bulb can be swiveled at night to direct light w
needed. The LED lights are enclosed in the shatter-resistant bulb, do not get hot, and
duce an even light.
The Nokero solar light bulb is
a small, lightweight, portable
light, shaped like a light
bulb for easy identification.
The bulb hangs in the sun
to charge and can be hung
or laid on its side at night. A
"pivot" feature allows users to
swivel the solar panel toward
the sun to maximize charge
capability.
Source: Iratitute for International
Business

Accepted Answer

Here the case study is about the invention of solar bulb in the year 2010 and how the journey of the…