Godrej Chotukool: A cooling solution for mass markets
Case Analysis by NadezhdaPeneva, AUBG EMBA student, International Business Inspired by Dr. Akbar
Godrej Chotukool refrigerator is generated as a result of a radical idea based on the principles of disruptive innovation developed by Prof. Clayton Christensen. Totally different in technology, size, structure, performance and value proposition to the target consumers, Chotukool addressed the social and economic needs in rural areas of India. 1. Potential issues
As the president of USA Roosevelt once said "The test of our progress is not whether we add more to the abundance of those who have too much; it is whether we provide enough for those who have too little" (Roosevelt) . Rural India was really a different market. The needs and wants were different and so is the income. Did Godrej manage to address these needs by invention of Chotukool? While Godrej remained the first India’s white goods manufacturer to address the rural-poor with low end innovations, its biggest impediment was distribution and logistics: there was neither a distribution network nor a good infrastructure. Is the disruptive innovation a successful business model in a developing country like India? 2. Possible solutions
One objective of disruptive innovation is to remove barriers to consumption. Chotukool was one such low cost solution for millions of non users of refrigerators in the India’s rural areas. Considering its low initial and running cost, its compact dimensions, its energy independency and durability, one can conclude that Chotukool was a successful low end disruptive innovation - inferior good designed for customers with low performance demand. Godrej designed not only innovative product and technology but also applied a breakthrough approach to the market by targeting individual and business customers and by on-boarding some of them as micro entrepreneurs. Product distribution is mainly through NGOs and apparently by...
Cited: Ch. Dhanaraj, B. S. (2011). Codrej Chotukool: A cooling soultion for mass markets. Ontario: Ivey Publishing.
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Roosevelt, F. D. (n.d.). http://historymatters.gmu.edu. Retrieved October 27, 2014, from http://historymatters.gmu.edu/d/5105/
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