Product details

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Subject category: Entrepreneurship
Published by: The Legatum Center for Development and Entrepreneurship at MIT
Originally published in: 2018
Version: July 2018
Revision date: 01-Mar-2019
Length: 18 pages
Data source: Published sources
Notes: This item is part of a free case collection. For terms & conditions go to www.thecasecentre.org/freecaseterms

Abstract

Sanergy was installing 100 new toilets per month in the slums of Nairobi, Kenya, but David Auerbach's team still had a long way to go before reaching their targeted economies of scale (at which point they could provide sanitation services to all Nairobi slum residents at less than one-fifth the cost of a running-water sewer). Now that Sanergy's for-profit arm was finally generating revenue, it was time to consider the next steps to grow the company. Economies of scale in collection and conversion processes would allow Sanergy to sell waste-converted products to farmers at greater volume and profit, but first they had to install many more toilets, which in turn demanded additional funds. This case is part of the Legatum Center for Development and Entrepreneurship at Massachusetts Institute of Technology free case collection (visit www.thecasecentre.org/legatum for more information on the collection).

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Abstract

Sanergy was installing 100 new toilets per month in the slums of Nairobi, Kenya, but David Auerbach's team still had a long way to go before reaching their targeted economies of scale (at which point they could provide sanitation services to all Nairobi slum residents at less than one-fifth the cost of a running-water sewer). Now that Sanergy's for-profit arm was finally generating revenue, it was time to consider the next steps to grow the company. Economies of scale in collection and conversion processes would allow Sanergy to sell waste-converted products to farmers at greater volume and profit, but first they had to install many more toilets, which in turn demanded additional funds. This case is part of the Legatum Center for Development and Entrepreneurship at Massachusetts Institute of Technology free case collection (visit www.thecasecentre.org/legatum for more information on the collection).

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