UNDERSTANDING THE BUSINESS MODELS OF SOCIAL HYBRIDS – 10P’S FRAMEWORK FOR CHALLENGES AND ACTIONS

There are increasing numbers of social hybrids focusing on the design and implementation of innovative, market-based business models for serving the global base of the pyramid (BoP) segment. The hybrid business models of these enterprises focus on delivering the integrated mix of positive social outcome and commercial revenue streams. However, considering the complexity of the BoP context, the success and sustainability of the social hybrids depend upon the ability and capability in identifying the challenges and determining the strategic alternatives and actions to blend the business model appropriately. The research objective involves identifying the challenges faced by the social hybrids and corresponding strategic choices specifically in terms of 10 P’s (purpose, product, price, place, promotion, people, partnerships, policy, purse strings and presence) framework identified by the authors. The qualitative multi-case based research methodology is applied for data collection and analysis. The sampling involves the field interaction with the three social hybrids targeting the energy and healthcare needs of the BoP segment in India. The experience of the social hybrids cited in this article helps to resolve the theoretical tension as to why should social hybrid means self-sustainable and social mission focused enterprise leveraging the market-based logic for positive cash flow irrespective of the legal setup.