Providing low-cost and high-quality medications to rural communities in developing countries: The case of Accion Medica Cristiana in Nicaragua

Abstract

This case describes a situation in which an NGO that distributes drugs in rural Nicaragua faces inventory management issues, caused by the increased complexity of its supply chain. The case also describes how a regulation change made Nicaragua a more profitable setting for pharmaceutical distributors, which attracted more competition, including that of a Mexican low-cost drugstore chain. This case has two main purposes: 1) to develop students' knowledge and skills in business model assessment; and 2) to help students identify key resources, activities and capabilities of an organization. The CANVAS business model generation tool constitutes a pragmatic tool that enables the students/participants to fully understand, assess and discuss the basic business model of an organization.