Why Aravind Eye Hospital's Business Model is so successful?
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Aravind Eye Hospital’s Company Overview
Aravind Eye Hospitals is a hospital chain in India. It was founded by Dr. Govindappa Venkataswamy (popularly known as Dr. V) at Madurai, Tamil Nadu in 1976. It has grown into a network of eye hospitals and has had a major impact in eradicating cataract-related blindness in India.http://www.aravind.org/
Aravind Eye Hospital’s Customer Needs
Social impact: self-transcendence
Life changing: provides hope, self-actualization
Emotional: wellness, therapeutic value, reduces anxiety
Functional: connects, quality, simplifies, reduces risks
Aravind Eye Hospital’s Related Competitors
Aravind Eye Hospital’s Business Operations
Blended value is a relatively new conceptual framework in which non-profit organizations, companies, and investments are assessed on their capacity to create a combination of financial, social, and environmental value. Businesses that use mixed value business models actively enhance their social impact while maintaining economic efficiency. A fair-trade coffee cooperative, for example, generates social value via guaranteed minimum prices given to coffee growers and direct investments in community development.
Crowdfunding for charity purposes is a collaborative effort by people to aid charitable projects. Civic crowdfunding is a kind of charity crowdfunding in which money is collected to improve public life and space.
Embedded social enterprises:
The built-in social model is predicated on the premise that everyone wants to do good and lose weight in their awareness in a highly consumerist society. Toms Shoes was the first business to establish a successful strategy for include contributions in the value of its bids. Concentrating on shoe sales, the company gained notoriety in the media and its consumers when they announced that another team is given to a charity for every pair of shoes bought.
The prevention, treatment, and management of disease and maintaining mental and physical well-being via the medical and allied health professionals' services. It includes diagnostic, preventative, remedial, and therapeutic service providers such as physicians, nurses, hospitals, and other private, public, and volunteer organizations. Additionally, it comprises producers of medical equipment and pharmaceuticals, as well as health insurance companies.
The nonprofit world rarely engages in equally clear and succinct conversations about an organization’s long-term funding strategy. It works on funds and provides services to the user free of cost. That is because the different types of funding that fuel nonprofits have never been clearly defined. A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view. In economic terms, a nonprofit organization uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit or dividends.
They 'rob' the wealthy and give to the needy, which distinguishes them from their main competitor, who does the polar opposite. Products and services are used by 'the poor' for a low or even no cost, while 'the wealthy' pay a more fantastic price. In addition, it contributes to brand recognition and makes 'the wealthy' feel better about purchasing since it benefits impoverished people. The most outstanding example is TOMS Shoes, which gives one pair of shoes to a kid in need for every couple sold to customers.
Social responsibility will only be accurate if many managers embrace moral leadership rather than immoral leadership, organizational management, and business ethics that engage morals and values in corporate governance. In a nutshell, it addresses the concept of who or what really matters.
Target the poor:
The product or service provided here is aimed towards the bottom of the pyramid rather than the top. The target of the flawed business model is a financially feasible strategy that helps low-income communities by integrating them in the value chain of a firm on the demand side as customers and consumers and the supply side as producers, entrepreneurs, or workers in a sustainable manner. While the business earns a little profit on each product sold, it profits from the increased sales volume often associated with a large client base.
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