Honey Care Africa (A): A Different Business Model

Author :

Oana Branzei, Michael Valente

Pages :

16

Product Type :

Case

Reference # :

9B07M022

Teaching Note :

8B07M22

Institute:

Ivey Publishing

Setting:

Kenya;Tanzania;Uganda, Small

Year:

2006

Keywords:

Competitive Advantage; Sustainable Development; International Strategy; Alliances, Entrepreneurship, General Management/Strategy, International, Agriculture, Forestry, Fishing and Hunting

Summary/Abstract:

The founding entrepreneur of Honey Care Africa (Honey Care)revitalized Kenya's national honey industry by focusing on small-holder farmers across the country. Central to the success was an innovative business model: a synergistic partnership between the development sector, the private sector and rural communities that drew on the core competencies of each party as well as their complementary roles. This tripartite model was combined with local manufacturing of beehives, effective beekeeping training and community-based extension service provision, the provision of a guaranteed market to small-holder farmers through forward contracts, as well as prompt payments. Four years later, Honey Care has achieved 68 per cent market share in Kenya, distributes several brands of organic, fair trade honey internationally and is a lead distributor of bees-wax. The business model has been successfully replicated in neighbouring Tanzania, with expansion plans to Uganda and Sudan.