Gas Natural BAN’s Strategy for Low-Income Sectors

This case focuses on the project to expand the Gas Natural BAN network to supply natural gas to five popular neighborhoods on the outskirts of Buenos Aires. It shows how a business model has evolved to serve clients in the low-income sector (hereinafter LIS), and in particular how the company has a local CSO, Fundación Pro Vivienda Social (Foundation for Social Housing, hereinafter FPVS) , collaborated. , and learned to work with these communities in a project carried out at Cuartel V in Moreno. From the project with FPVS, the company had started to pursue natural gas network expansion projects for LIS neighborhoods with a different business approach scheme used by traditional customers. At the time shown in this case, the company must define the guidelines of its expansion strategy of the natural gas network for the LIS neighborhoods. Gas Natural BAN’s experience with FPVS, while considered successful by the company, revealed some inefficiencies that prevented large-scale application and led management to seek new options to follow its LIS strategy. As a result, the FPVS collaboration model and its potential for optimization were questioned. It was also questionable whether the scheme used by FPVS in Morenos Cuartel V would be applicable to other neighborhoods with different conditions. This teaching case is mainly about the development of inclusive business models based on cross-sector cooperation between companies, non-profit organizations and citizens. It can be used in graduate courses on business and society, corporate social responsibility, or corporate strategy, including base-of-the-pyramid topics.

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