VisionSpring Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

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Introduction

VisionSpring, a reading-glass company founded in 2001 by Dr. Jordan Kassalow, was established to address a neglected market by providing affordable reading glasses to those living at the base of the pyramid. But the company identified the lack of awareness, access, and affordability as key obstacles to proper vision care for those suffering from presbyopia. In response, VisionSpring created a bold solution: employing “business-in-a-bag” techniques, they trained rural entrepreneurs, dubbed “Vision Entrepreneurs,” to start lucrative businesses by selling reading glasses in their regional areas.

This approach aimed to not only increase access to inexpensive glasses but also to empower local entrepreneurs. Since then, VisionSpring has experienced great success – they have grown operations to various countries, trained over 1000 Vision Entrepreneurs, and sold over 100,000 pairs of glasses.

VisionSpring was faced with a challenging balance between business-unit profitability and the overall sustainability of its system. This case delves into the complex task of scaling the company's approach to providing reading glasses to those in need while protecting their financial stability. This case explores the strategies employed by VisionSpring to manage both impact and financial stability, from optimizing their profits and streamlining operations to increasing access and developing local entrepreneurs.

It provides deep insight into the difficulty of franchising micro-enterprises to give goods and services to low-income populations. Despite the obstacles, the company was determined to make both a societal and financial impact and investigated a variety of strategies that could help them achieve that.

Problem Statement

VisionSpring faces a set of complex, daunting challenges, ranging from their limitations in revenue generation, including uneven sales frequency and inconsistent demand for reading glasses, to reducing the cost of goods sold and cutting overhead costs, to the ultimate human resources dilemma of how to attract and maintain talented Vision Entrepreneurs in frontier markets. The acquisition of reading glasses involves a range of variables, making the purchase decision a tricky one.

Situational Analysis

Company Financial Analysis

VisionSpring has been confronting financial obstacles to obtain both profitability and sustainability. In 2007, the company operated with a hefty negative net income of -445%, implying that each product sale necessitated an astounding $13.80 in subsidization for each $3.10 of gross earned. To strengthen its economic integrity, VisionSpring has devised a 5-year capital project scheme targeted at optimizing development, elevating operational capabilities, and amplifying supply chain efficiency.

Financial stability is essential to VisionSpring, and one key way to improve it is to increase revenues and reduce costs. To do this, the company is diversifying its product mix, introducing complementary items, and ramping up sales volumes. By 2012, the firm wants to reduce the fully loaded cost per unit of reading glasses with improved design and cost management.

Also to increase financial stability, the company seeks to reduce reliance on philanthropic subsidies and is shifting its fundraising strategy to focus on repeatable philanthropic sources. This will not only reduce staff time spent fundraising but also increase donations, improving their return on investment.

The Emphasis of Their Mission

VisionSpring's purpose is to ensure that everyone has access to reading glasses; a goal that requires two interconnecting elements to be achieved: increasing reading glass access and cultivating entrepreneurs. To address the market failure in terms of awareness, affordability, and access to reading glasses, both of these aspects are paramount. Achieving this mission requires a high level of complexity and variation in the language used, meaning some longer and more complex sentences must be interspersed with shorter ones.

For millions of Presbyopia individuals who lack affordable eyewear, increasing access to reading glasses is an absolute necessity for improving their quality of life. By offering high-quality, yet affordable vision solutions through VisionSpring, individuals are enabled to become more productive, pursue better educational chances, and gain a greater quality of life.

These spectacles can potentially have a tremendous effect on their lifestyle, allowing them to read, work, and achieve simple daily tasks without any hindrances. Therefore, providing access to reading glasses should be an imperative venture to provide relief to the underprivileged population.............

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