What Products Should BlueOrchard Try to Launch?
Blue orchard Finance was objective to link the capital market with the existing microfinance organizations to generate an economic and social impact on the various respective markets. Jean-Philippe was convinced that the intrinsic motivation of the company was never to lose sight of the core aim of improving the lives of small entrepreneurs. The company focused to establish a mechanism that allows the small entrepreneurs to get access to financial services and loans with favorable terms to give the small enterprise businesses a chance to establish and expand the business. As such, the ventures will create employment thus boosting the per capita income of small entrepreneurs from different parts of the world.
What Kind of Partnerships Should It Try to Forge? With Whom and Where?
The microfinance company tried to forge a partnership with another financial institution in Geneva by signing a distribution agreement with the company. The agreement led to the successful attraction of both the private and institutional shareholders into their line of operation. As a result, Jean-Philippe put DMCF in the limelight because of making a diversified loan portfolio for the company. When the BlueOrchard Finance was established, there was no principle of inclusivity. Therefore, BlueOrchard Finance core role was to offer advice to DEXIA how to manage DMCF. The main aim was to undertake other projects or to make it a center of competence for microfinance institutions.
How Should Those Micro-Finance Products Be Sold?
BlueOrchard Finance had one strategy of selling its products. The company developed its marketing strategy of traveling extensively to most parts of the work to not only present themselves to microfinance institutions but also reach out international dignitaries from the international institutions like the Inter-American Development Bank and the World Bank. Besides, BlueOrchard Finance delved into strengthening their collaboration with the evaluation and rating companies such as Microrate, M-Cril, and Microfinanza. Besides, the company developed the local network and international networks. Therefore, the company used this strategy to introduce themselves as a player in the microfinance field. This made the company to pursue the geographical barriers.
How Should Increasing Competition Be Dealt With?
Weighing on the level of competition facing BlueOrchard management, the management team has established a number of strategies to maintain a competitive edge. One of the strategies of suppressing competition is by introducing systemic and standardizing business process in the company. This is possible by encouraging specialization amongst the employees thus optimizing coordination among the various employees of the company.
Secondly, the company focuses on positioning their existing investment and increase their market share by doing extensive advertising through active marketing. As such, the company will be able to streamline their operations with their partnering banks.
Besides, the company will continue to improve the quality of their products by responding to the needs of microfinance and monitoring the expectations of other potential investors. In the future strategic plan, the company is targeting to refine loan securitization as well as considering equity investments.
Where is BlueOrchard Most Vulnerable?
The issue of vulnerability of BlueOrchard Finance emerges because of the prevailing changes that were introduced to financial institutions more especially when microfinance institutions want to minimize the risk of foreign exchange. Although the DMCF was offering a variety of products, the company was suppressed by the existence of a foreign investment policy that restricts financial institutions from taking the foreign exchange risk taken by the fund. Thus, loans were only offered in a single currency of USD. Therefore, the business was only suitable in a dollarized environment thus it constituted the problem of not getting acceptance from other potential investors. However, the BlueOrchard Finance had tried to establish a scheme to reduce such a risk by processing loans from DMCF to MFI, at the stage the MFI makes a fixed term USD deposit with the commercial banks in order to secure a local currency loan extended to the subsequent local bank.
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