This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Fairphone's Business Model is so successful?

Get all the answers


Fairphone’s Company Overview


Fairphone is a pioneering and socially responsible company based in Amsterdam, The Netherlands. Established in 2013, the firm is renowned for its ethical approach to technology, creating and selling smartphones designed and produced with minimal harm to people and the planet. Fairphone's mission is to positively change the tech industry by developing products that respect human and environmental values. The company's smartphones are made from conflict-free materials and are designed to be long-lasting and easily repairable, reducing e-waste. Fairphone also stands out for its transparent supply chain and its commitment to improving working conditions in the tech industry. Business Model: Fairphone operates under a unique business model that prioritizes ethical sourcing, fair labor conditions, and environmentally friendly practices. Unlike many other tech companies, Fairphone aims to create sustainable, durable products rather than focusing on creating the newest, flashiest technology. The company sources materials that are conflict-free and support fair trade principles. Fairphone's products are also designed to be modular, meaning they are easy to repair and upgrade, thus extending the phone's life and reducing e-waste. Revenue Model: Fairphone's revenue model is primarily based on the sales of its ethical smartphones and related accessories. The company offers its products directly to consumers via its online store and through a network of retailers and partners across Europe. Fairphone also generates revenue by providing repair services and selling spare parts, supporting the company's commitment to longevity and sustainability. The higher price point of Fairphone products, compared to some mainstream alternatives, reflects the ethical and sustainable practices involved in their production. The company occasionally collaborates with organizations and runs crowdfunding campaigns to fund specific initiatives or projects.

https://www.fairphone.com/en/

Country: Netherlands

Foundations date: 2013

Type: Social enterprise

Sector: Consumer Goods

Categories: Electronics


Fairphone’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, badge value

Functional: quality, informs, connects


Fairphone’s Related Competitors



Fairphone’s Business Operations


Collaborative production:

Producing goods in collaboration with customers based on their input, comments, naming, and price. It represents a new form of the socioeconomic output in which enormous individuals collaborate (usually over the internet). In general, initiatives based on the commons have less rigid hierarchical structures than those found on more conventional commercial models. However, sometimes not always?commons-based enterprises are structured so that contributors are not compensated financially.

Crowdfunding:

Crowdfunding is the technique by which a large number of people contribute to a project. Contribute modest sums of money to support a new business endeavor. Crowdfunding leverages the ease of accessing vast networks of people, connecting investors and entrepreneurs through social media and crowdfunding websites. It can increase entrepreneurialism by widening the pool of investors further than the traditional ring of owners, relatives, and venture capitalists.

Curated retail:

Curated retail guarantees focused shopping and product relevance; it presents a consumer with the most appropriate options based on past purchases, interactions, and established preferences. It may be provided via human guidance, algorithmic recommendations, or a combination of the two.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Mass customization:

Mass customization is a strategy that entails using modular goods and manufacturing processes to allow efficient product individualization. Mass customization refers to producing customized output using flexible computer-aided manufacturing systems in marketing, manufacturing, contact centers, and management. Mass customization is the next frontier for manufacturing and service sectors alike. Beyond the physical product, mass customization is utilized by a diverse variety of software products and services with the goal of developing strong connections with customers via personalization and suggestion.

Open innovation:

A business concept established by Henry Chesbrough that inspires firms to pursue out external sources of innovation in order to enhance product lines and reduce the time needed to bring the product to the market, as well as to industry or release developed in-house innovation that does not fit the customer's experience but could be used effectively elsewhere.

Open-source:

Compared to more centralized development methods, such as those usually employed by commercial software firms, the open-source model is more decentralized. Scientists see the open-source approach as an example of collaborative openness. Peer production is a fundamental concept of open-source software development, with deliverables such as source code, blueprints, and documentation made freely accessible to the public. The open-source software movement started as a reaction to the constraints imposed by proprietary programming. Since then, its ideas have extended to other areas, resulting in what is known as open cooperation. Typically, money is generated via services that complement the product, such as advising and maintenance.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Radical transparency:

The concept of radical transparency, or everyone knowing everything, has the potential to be a significant driver of improved organizational performance. This is especially true for new, fast-growing businesses that are under pressure to achieve aggressive sales targets and keep their investors pleased. In governance, politics, software design, and business, radical transparency refers to activities and methods that significantly enhance organizational processes and data openness.

Reputation builders:

Reputation builders is an innovative software platform that enables companies to create, collect, and manage positive internet reviews. It was a pioneer in the utilization of user-generated material. The website services are provided for free to users, who supply the majority of the content, and the websites of related businesses are monetized via advertising.

Sustainability-focused:

Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Trash to cash:

Trash to cash may be an extremely profitable business strategy. It entails collecting old goods and repurposing them or reselling them to other areas of the globe. It may be very lucrative for two reasons. The first reason is that most of these goods can be obtained for little or no money, dramatically boosting the profit margin. Furthermore, companies pay to have their garbage collected, which may be a lucrative revenue stream. It may be a double whammy for a business that is compensated to remove debris.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.