Description
Part 1: Complete the Paper
Throughout the course, you’ve crowdsourced ideas for the problem/opportunity statement, analysis, alternatives, and criteria, using design mindset and group activities. For each of these steps, you’ve integrated the insights from those activities and uploaded a draft for instructor review.
Now, you’re putting it all together, along with the last couple of sections (recommendation, action plan) and an executive summary. Love what you’ve written so far? Use it! If it triggers a high TurnItIn score we can correct for that. Want to change anything from previous steps? Go right ahead! Ideas and insights strike anytime. Just don’t miss the deadline!
Required Sections and Format for Case Study Assignments:
Your written analysis should follow APA format and contain the following sections (Sections 3-11 should be level one headings in your paper):
Title page (in accordance with APA format)
Table of contents
Executive summary
Problem statement
Problem and Data analysis
Alternatives
Key decision criteria (here is an example of how to use a weighted criteria matrix
Alternatives analysis and evaluation
Recommendation
Action and implementation plan
Appendices (if any)
References
NOTE 1: Almost everything has been done. What needs to be working on is the Action and Implementation section. Please check the attached files, 1 of them is the Alternatives and Criteria which was done and for most parts, the other one is where we’re working on for final parts. I need you to help me with the Action and Implementation Section.
Part 2: Powerpoint slides for the Presentations:
In this part, your job is to produce a presentation to propose an innovation team, using the best practices and principles for innovation from the sources in this course (and/or additional sources you find on your own). whose purpose is to implement the recommendation from your case analysis.
Create a story, following best practices in presentations, that will convince your senior-level leaders to support the creation of this team. Be creative! Tell YOUR story: why is this team and its work important?
Give your presentation a descriptive title, a main message, and a logical flow. This is an opportunity to practice creating awesome visual presentations, using everything you learned.
Purpose – you are designing a team to support the recommendation you came up with in your case analysis for this course. Make it the ideal team for this purpose; build in innovation best practices and principles.
Audience – the design brief is primarily for the upper-level managers or executives who will commission your team. Write it as a pitch for them to authorize creating (and funding) your team’s work.
Topics to cover:
Describe the team’s purpose or “why.” What is its goal, what innovation is it implementing or supporting? How would you define its success?
Describe the role innovation will play in this unit’s ability to meet its mission and/or goals, and why innovation is essential.
Describe the ideal size of your team (how many members).
Describe the ideal profile of the leader of this team: what leadership qualities must they have? What skills and abilities would best help support innovation?
Describe the ideal profile(s) of team members. How will you ensure diversity? what skill sets do members need to have?
Describe how you will ensure the team maximizes innovation in its structure: who will be in charge? How will it meet? How will new ideas be surfaced, analyzed, evaluated, and chosen?
Describe at least two innovation techniques and/or frameworks you recommend for this unit.
Include a slide that lists all sources used in the presentation, in APA format. Use at least 4 different sources.
NOTE 2: You won’t have to cover everything from 1 to 8 since it is a lot. Just work on whatever you can and as much as you can and I will see what I can do with it!
Unformatted Attachment Preview
EXECUTIVE SUMMARY – Junior
RESULTS- Forrest
RECOMMENDATION-Rachel
Based on the scores from each of the three decision criteria, Alternative #1, establishing official
licensing partnerships with the like minded businesses Shiftphone and Teracube, should be
implemented. Fairphone struggles to earn a significant portion of the cell phone market. If
Fairphone continues on this path they face an unstable future. Alternative #1 offers a direct
solution to this issue. By leveraging partnerships with Shiftphone and Teracube, Fariphone adds
value to their company, their brand, and they do so without spreading their resources too thin.
ACTION AND IMPLEMENTATION PLAN – Emma + others
What needs to happen (plan)
When does it need to happen (timeline)
Who needs to implement the plan (who is involved, who has ownership)
Optional: Costs or ROI (return on investment)
Action
Timeline
Stakeholder / Decision
Maker
Draft Memorandum of
Understanding Between
Fairphone, Shiftphone, and
Teracube
2 Weeks
Fairphone Legal Team
Sign MOU
All parties in person, 1 day
Fairphone, Shiftphone and
Teracube Legal Teams
Begin mass production of
Fairphone stock for
distribution in Shiftphone,
Teracube markets
6 Months
Announce Partnerships
Fairphone Marketing Team
Full Scale Fairphone
Distribution in US,
expanded EU markets
End of year 2
Fairphone CEO, all
divisions
FAIRPHONE CASE STUDY
Complexities of Operating Ethically in a Competitive Space: A Case Study of Fairphone
Emma Keene, Forrest Hollingsworth, Junior Razon, Le Nguyen, Rachel Lambrecht
Information Technology and Administrative Management, Central Washington University
College of Education and Professional Studies, Central Washington University
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FAIRPHONE CASE STUDY
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Table of Contents
Executive Summary …………………………………………………………………………………………………………………… 4
Problem Statement…………………………………………………………………………………………………………………….. 5
Problem and Data Analysis ………………………………………………………………………………………………………… 5
Supply Chain Management …………………………………………………………………………………………………….. 7
Ethical Labor…………………………………………………………………………………………………………………………. 8
Marketing ……………………………………………………………………………………………………………………………… 9
Competition …………………………………………………………………………………………………………………………. 10
Problem Summary …………………………………………………………………………………………………………………… 12
Alternatives……………………………………………………………………………………………………………………………… 12
Alternative #1 ………………………………………………………………………………………………………………………. 13
Alternative #2 ………………………………………………………………………………………………………………………. 16
Alternative #3 ………………………………………………………………………………………………………………………. 18
Key Decision Criteria ………………………………………………………………………………………………………………. 22
Key Decision Criteria #1 ………………………………………………………………………………………………………. 23
Key Decision Criteria #2 ………………………………………………………………………………………………………. 23
Key Decision Criteria #3 ………………………………………………………………………………………………………. 24
Alternatives Evaluation and Analysis ……………………………………………………………………………………….. 24
References ……………………………………………………………………………………………………………………………….. 34
FAIRPHONE CASE STUDY
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Executive Summary
FAIRPHONE CASE STUDY
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Problem Statement
Self-imposed deviations from industry trends threaten Fairphone’s ability to establish a
viable market for ethically sourced and produced mobile phones in a competitive space that has
historically not placed a high value on sustainable practices.
Problem and Data Analysis
Fairphone, a Dutch electronics manufacturer founded in 2013, seeks to position itself as a
unique competitor in the telecommunications market through the development and
demonstration of business practices that differ in approach from industry leaders and competitors
such as Apple and Samsung.
According to cofounders Bas Van Abel, Tessa Wernink, and Miquel Ballester Salva, the
company founded with a mission to revolutionize the smartphone industry by producing devices
in an ethical and environmentally sustainable manner (Georgi, 2017). The company sought to
raise awareness about social and environmental issues tied to electronics, emphasizing fair labor
conditions, responsible material sourcing, and a commitment to longevity and repairability.
Specifically, Fairphone aimed to tackle problems related to conflict minerals, labor rights abuses,
and environmental degradation inherent in consumer electronics production, offering a more
ethical and sustainable alternative to mainstream smartphones. The company states a mission to
affect change on the telecommunications industry at large through their practices (Duke &
Smith, 2022).
The company’s first product, the Fairphone 1, was released in December 2013, and its
successor, the Fairphone 2, was released in 2015 adding improvements such as modular design,
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which allows users to easily replace and upgrade individual device components, promoting
longevity and reducing electronic waste.
Fairphone launched the Fairphone 3 in 2019. This model continued the company’s
commitment to ethical sourcing and sustainability while aiming for a more competitive position
in the smartphone market. The Fairphone 3 retained the modular design concept and introduced
improvements in specifications. With Fairphone 3, the company faced the challenge of
balancing its mission-driven goals with the need to be commercially viable in a highly
competitive industry. This involved expanding its customer base beyond committed
environmentally conscious consumers to a broader market segment.
Fairphone has sold approximately 400,000 mobile devices in their self-titled product line
(i.e. Fairphone 1, 2, 3, 3+) as of 2022 in Europe. As of 2021, Fairphone has ceased the
production and sales of the Fairphone 3, and as of 2022, it has sold through the remaining stocks
of its successor, the Fairphone 3+. The company continues to produce and support new models.
Despite its mission-driven approach, Fairphone has faced financial and market growth
challenges. The production costs of ethically sourced components and the limited scale of
production have impacted the company’s ability to compete on price with larger smartphone
manufacturers.
The following analytical document will summarize and review the unique market and
managerial problems and opportunities present in Fairphone’s practices to better understand its
position in the industry. We will analyze the launch and reception of the Fairphone 3 model,
evaluate industry trends and competitor actions, and identify avenues for improvement.
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This group’s opinion is that Fairphone faces significant challenges in the management of
four primary areas: supply chain management, ethical labor, marketing, and responsiveness to
competitor actions.
Supply Chain Management
Social, environmental, and financial difficulties are associated with manufacturing
phones industry wide (Duke & Smith, 2022). Fairphone decided to address these challenges by
designing a mobile phone that can be both consumer cost-friendly and environmentally
conservative. However, ongoing supply chain issues have complicated the company’s ability to
introduce sustainable products and maintain growth uniformly.
Fairphone is faced with the challenge of acquiring fairly sourced and produced raw
materials and dealing with a complex supply chain system of numerous sources, subsidiaries,
and partners. The cost of producing their phones is high compared to the average production cost
of the industry as Fairphone has to account for the extra time, labor, and review processes that go
into producing the various modular components which the Fairphone design consists of. Due to
commitments to consumers and partners, the company is still mandated to produce cost-friendly,
environmentally friendly, reliable, and easily serviceable phones despite this increased costliness
and time sink. Further complicating Fairphone’s supply chain issues is the company’s
commitment to modular and repairable devices. Since the company needs to offer self-repair
services to the customers the company must have a robust supply chain network that services not
only new devices, but older models as well, introducing complexities of longer-term sourcing
and supply than Fairphone’s competitors maintain (Romagnoli et al., 2022).
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Because of the complexities of utilizing a fair and sustainable supply chain, Fairphone
management often has limited opportunity to exercise their full potential. The design and
manufacturing department is limited to the extent they can dive into research and innovation.
The finance department is also affected as they have to account for a stable but stagnant
company with minimal progress. The sales and marketing department is also involved as it is
forced to focus on a limited supply that can serve the company’s market. This self-imposed
standard sets a cap on the company’s ability to grow quickly (Lee et al., 2021).
Ethical Labor
Fair labor practices are crucial to any sustainable effort, especially Fairphone as they try
to position themselves within a highly competitive smartphone industry. Their challenge lies
within not only creating a “green” mobile phone, but rather setting an example of good practice
that other companies in the industry can follow. Communicating and emulating that sustainable
practices are possible industry wide.
As Fairphone embarked on their sustainability journey, they faced a crucial turning point.
Were they going to focus on the environmental impact within a complex supply chain through
sourcing raw natural materials or negative social issues such as poor factory working conditions,
unethical pay, and child labor?
When Fairphone decided to focus their efforts on both sides of fair trade, they discovered
that although they had one assembly supplier, that supplier had an additional 120 sub-suppliers,
each with their own supply chain (Duke & Smith, 2022). Fairphone also identified through this
web of suppliers, they all sourced materials from different places. With the rise in sustainable
practices, including fair trade, certifications were implemented to mitigate or eliminate negative
social and environmental impacts. To be Fair Trade Certified, a company is supporting safe work
FAIRPHONE CASE STUDY
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conditions, environmental protection, sustainable livelihoods, and community development
funds through transparent and fair supply chains.
Fairphone is compliant with these certifications, and indeed an active participant in
promoting fair practices industry wide, but it is faced with the challenge of maintaining internal
value consistency while growing. In a 2018 interview, Fairphone co-founder Bas Van Abel
described Fairphone’s products as “fairer,” lamenting that the more labor and source is required
to grow in the industry, the more likely that a manufacturer must be reliant on some degree of
unethical practice (Rushkoff, 2018).
Marketing
Fairphone has demonstrated a preference to position itself as a company interested in
“social enterprise” as opposed to uniquely operating in telecommunications. This has attracted a
dedicated consumer base but has also complicated the company’s avenues for growth. In a 2017
interview with Homerun.co, cofounder Tessa Vernink stated:
There might be a misconception that as a social enterprise, we don’t operate like a
‘normal’ business, but that’s not true. In many ways, most of our choices are the same —
we still need to make money and sell phones — but the outcome and the goals are
different. Our focus is investing in social innovation, instead of purely technical
innovation. When other phone companies design a new phone, they research new
technology — we research supply chain improvement (Georgi, 2017).
Currently, the company’s repeat customers form a limited segment that ranges only from
what market analysts refer to as “Dark Green” consumers who are very serious about sustainable
and ethical practices and plan purchases around their beliefs, to “Light Green” consumers who
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are interested in sustainability, but generally make purchases more impulsively. (Duke & Smith,
2022). The company has experienced slowed adoption from users outside of the green market.
Fairphone is actively grappling with how to appeal to those consumers without
compromising the company’s values (Duke & Smith, 2022). Pressure to improve particular
product aspects such as the battery and camera (cited in numerous product reviews) from
interested but non-committed consumers is at odds with the company’s ability to maintain
affordable repair parts sourced from ethical partners. Investment in alternatives may alienate the
company’s current base.
This is precarious marketing position for the company to be in, dividing resources
between green consumers who are investing in Fairphone’s products based on the assumption
that they can extend their products lifespans rather than purchase entirely new devices (limiting
incoming cashflow for the manufacturer), and those new, untapped consumers who have higher
expectations for Fairphone’s products based on their experiences with market leaders.
The company will be exposed to additional ethical and financial challenges that impact
its marketing flexibility as it attempts to grow past the Early Adopter segment.
Competition
Fairphone faces competition from a diverse set of players in the smartphone market, each
with a unique approach to sustainability, ethical practices, modular design, and product offerings.
Shiftphones and Teracube are a couple of Fairphone’s most notable and direct competitors, all
sharing Fairphone’s commitment to environmentally friendly materials and ethical production.
These companies aim to appeal to consumers who prioritize sustainability and longevity in their
electronic devices (Fatmi, 2022).
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Additionally, Nothing Phone, although not a direct competitor in ethical production,
could compete in the modular and sustainability field given its focus on repairability. When
electronic devices are designed to be easily repairable, it extends their lifespan, reducing the need
for frequent replacements and decreasing the overall demand for new products, therefore,
making it a more sustainable device. This has the potential to entice some of Fairphone’s
potential consumers into purchasing a Nothing Phone instead.
On the other hand, industry giants like Samsung, Nokia, and Google provide indirect
competition, offering more mainstream options. In recent years these companies have begun to
incorporate more sustainable practices into their supply chain by using recycled materials in their
products. At the time Fairphone 3 was released, the Samsung Galaxy S10, the Nokia 7.2, and the
Google Pixel 4 all had incorporated at least 50% recycled materials which made them sustainable
options with a broader marketing range than Fairphone has captured at present (“Fairphone 5
Alternatives – Similar or Related Devices,” 2024.)
Opportunely speaking, Fairphone may not match the scale of some larger competitors,
but its unique focus on holistic sustainability and ethical practices positions it as a leader in the
niche market of ethical smartphones. The company faces a challenge of capitalizing on this
opportunity by communicating its message and range of products to a wider audience, innovating
avenues to remain competitive, without diluting its values.
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Problem Summary
Fairphone has to-date failed to capture what industry analysts consider a notable
percentage of the telecommunications market, and the company is now faced with non-standard
internal and external production and management challenges that threaten its future stability as
an ethical, and sustainable entrant in a highly competitive space.
Alternatives
This group recommends Fairphone invest in expanding its existing consumer base and
market share in order to carve a more established, sustainable niche in the telecommunications
space. At present, we are suggesting three alternatives, focused on different aspects of the
Fairphone business, in order to identify reasonable avenues towards increasing the company’s
consumer base, market share, and revenue. Firstly, we identify Fairphone’s unique position as a
flexible, mission-based company as being particularly advantageous to strategic partnerships
with likeminded business Shiftphone and Teracube. Secondly, we identify Fairphone’s
commitment to sustainability and repairability as presenting an opportunity to expand physical
presence through the establishment of a network of device repair centers as a means to attract
and retain customers. Lastly, we identify Fairphone’s mission-based business practices as being
adaptable to a considered, unique social media campaign through partnerships with space
influencers.
Each alternative is expounded upon and evaluated against business-minded decision
criterion in the following section.
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Alternative #1: Establish Official Licensing Partnerships with Likeminded Businesses,
Shiftphone and Teracube.
Fairphone is uniquely positioned in the smartphone industry as a mission-focused brand
whose success is not directly comparative with industry leaders like Apple and Samsung, but
rather in terms of impact on the industry. To that end, Fairphone has both the inclination and
flexibility to partner with ideologically aligned competitors, specifically sustainable and ethical
brands Shiftphone and Teracube, to expand their foothold in the industry and make a more
substantive impact, as determined by the company mission statement.
In this proposal, we suggest that Fairphone enters into a multi-year, mutually beneficial
agreement with Shiftphone and Teracube in order to provide reciprocal repair services for all
three brand’s devices, promote each other’s models dependent upon regional and consumer
circumstances, and share supply chain and manufacturing resources and agreements to increase
production speed and distribution including within the United States (the US), where Fairphone
does not currently operate.
These brands would maintain their individual identities and operational capacity but
leverage each other’s resources and partnerships in order to expand their operations in the spirit
of encouraging sustainable and ethical growth within the telecommunications market (i.e.
Teracube would be an “officially licensed partner” of Fairphone and vice versa). The companies,
in collaboration, have to contribute to the resources and input equitably, and they also distribute
income and risks among the partnered stakeholders. In collaboration, the companies engage in
mutual decision-making (van Loon & Van Wassenhove, 2020). Through engaging in a
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partnership, the Fairphone company achieves technology incorporation into the product,
financial assistance, as well as expanding services.
Supply Chain Management
As currently existing manufacturers, Shiftphone and Teracube have their own supply
chain management arrangements that could benefit Fairphone in ramping up production capacity
and speed to match market demand and growth targets. Increased availability of resources,
including device components, to Fairphone’s research and development teams would also
promote the company’s ability to prototype and produce models of a higher caliber.
Ethical Labor
In addition to the previously mentioned supply chain overlap, Teracube (Teracube, 2024)
and Shiftphone (Herranz, 2021) have overlapping or parallel commitments to Fairphone’s that
promote ethicality within their own operations and those of their supply and manufacturing
partners. This is a benefit to Fairphone in the sense that the company will not need to devote
valuable time and resources to vetting potential new partners and can instead leverage the
existing agreements made by Shiftphone and Teracube (Amin, 2020).
Marketing
A licensed expansion would broaden Fairphone’s consumer base without introducing
significant risk as Shiftphone and Teracube have successfully tapped markets that Fairphone is
not capitalizing on. Shiftphone is generally regarded by tech reviewers as producing more
secure, responsive, and modular devices for repair than Fairphone, and Teracube operates within
the US.
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In this case, Shiftphone’s components and modified Android OS “ShiftOS”, which could
be contributed to Fairphone for their own devices or which Fairphone could market on their
behalf, would be appealing to light green and base consumers who have been reluctant to adopt a
Fairphone model due to lacking technical features, increased data encryption and privacy being
highly relevant to specific market segments (iFixit, 2024).
Further, Teracube’s distribution within the US significantly increases the market reach of
Fairphone. Teracube, having been founded by a former Amazon executive, would be an ideal
partner for the company as it learns the ins and outs of the US market. To date, numerous
requests for Fairphone availability in The US can be found on Fairphone’s company forums.
Competition
Within the bounds of the proposed alternative, Fairphone would begin the process of
transitioning some currently existing competitive metrics into collaborative ones. The combined
revenue, consumer base, and market reach of Fairphone, Shiftphone, and Teracube has a more
substantive projection when compared to industry leaders like Samsung and Apple than
individually (Tracxn, 2024).
Timeline
Utilizing Teracube and Shiftphone’s existing supply and distribution systems will
actualize an expansion of Fairphone’s market reach faster than attempting to charter individual
expansion might. In the former, Fairphone can capitalize on Shiftphone’s superior device
components to increase production speed and quality, and then utilize Teracube’s existing US
distributors to expand their consumer base and market. In the latter, Fairphone would need to
sink significant time and cost into establishing and registering a corporation within the states,
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getting approval from US-based fair-trade associations, and charting individual distribution
agreements.
We’d propose a 4-year phased implementation plan to get Fairphone devices into the US
and other regions through partnerships. Within the initial 2 years Fairphone models would be
distributed through partnerships, and within the next 2 Fairphone would be up to speed on
manufacturing and repairing their own devices within those regions.
Alternative #2: Establish A Network of Physically Based Repair and Sales Locations.
Fairphone, in their commitment to revamping the smartphone industry through
sustainability and ethical practices, recognizes the immediate need to enhance accessibility to
their products and services. By strategically expanding their network of repair centers they are
able to provide this accessibility while maintaining their principles. This multifaceted alternative
not only takes a pivotal step toward advancing Fairphone’s position in the market, but it also
continues their unwavering dedication to creating a culture of responsible consumption and
sustainability in electronics.
Supply Chain Management
The expansion of Fairphone’s repair center network presents an opportunity for them to
redefine and reiterate their supply chain management practices. This allows for greater
efficiency, transparency, and sustainability throughout the process (van Loon & Van
Wassenhove, 2020). It also allows them to cultivate closer relationships with repair part
suppliers. In doing so, Fairphone can not only ensure a steady and reliable supply of sustainably
sourced materials but also mitigate the environmental impact associated with the extraction and
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production of the resources that go into smartphones furthering their position as a sustainable
company.
Ethical Labor
At the heart of Fairphone’s mission lies a commitment to upholding ethical supply chain
sourcing and management. By closely managing their network of repair centers, Fairphone can
have greater oversight and control over the parts they are sourcing, ensuring that all parties
involved in repair operations are afforded fair wages, safe working conditions, and opportunities
for professional development, etc. (Fairphone, 2017). Additionally, by adhering to strict ethical
standards and labor regulations, Fairphone sets a precedent for accountability and responsibility
within the electronics industry, inspiring other companies to follow suit and prioritize the people
within their workforce.
Marketing
The expansion of Fairphone’s repair center network broadens their role as a service
provider, serving as a powerful platform for brand promotion, customer engagement, and
community outreach in addition to the basic repair services provided (Fairphone, 2024). These
repair centers serve as a physical representation of Fairphone’s commitment to sustainability,
providing consumers with evidence of their commitment to the environment. Through hands-on
demonstrations and one-on-one care, Fairphone cultivates a feeling of trust with their customer
base.
Furthermore, the integration of retail capabilities within repair centers offers a unique
opportunity for Fairphone to showcase their latest products, engage directly with customers, and
increase sales. By creating a holistic retail experience that prioritizes transparency, education,
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and customer empowerment, Fairphone not only enhances their brand visibility but also fosters
meaningful connections with their target audience.
Competition
While other alternatives may focus on forging partnerships with competitors or launching
a social media marketing campaign, the expansion of Fairphone’s repair center network enables
the company to carve out a distinct competitive advantage within the market. By positioning
itself as a leader in sustainable electronics from their supply chain to repair solutions, Fairphone
differentiates itself from traditional, large smartphone manufacturers by offering consumers a
compelling alternative that aligns with their values. Through their commitment to accessibility
and ethical practices, Fairphone emerges as an extremely viable option in the search for
sustainable electronics, inspiring industry-wide change and setting new standards for responsible
business practices (Amin, 2020).
Timeline
The successful implementation of an expanded repair center network requires a
comprehensive approach that could take multiple years (tentatively, 3-5). A phased rollout
strategy, spanning multiple years, allows Fairphone to navigate the complexities of expansion
while maintaining quality standards, amongst other obstacles. It allows for them to evaluate the
success of the first few repair centers before implementing more. By adhering to a structured
timeline and leveraging insights gained from market research and customer feedback along the
way, Fairphone can navigate the challenges of expansion with confidence, further enhancing
their position as a leader in sustainable electronics and driving positive change within the
industry.
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Alternative #3: Create exclusive partnerships (sponsorships) with popular social media
influencers, who have an emphasis on sustainability, to endorse and promote Fairphone
products.
It’s no secret that Fairphone has been working to position themselves as the leader in
sustainable smartphones. After all, Fairphone did start their journey through activism and social
awareness campaigns that shed light on the negative social and environmental impacts the
industry has. In 2010, industrial designer Bas Van Abel launched Fairphone’s first-ever
awareness campaign: “Fairer Phones”. Within Fairphone’s mission lies the desire to not only
create ethical consumer electronics, but the idea to create change across the entire smartphone
industry. Alternative three expands on Fairphone’s opportunity to partner with social media
influencers who have similar values and initiatives. Such partnerships could expand their reach
and engagement, enhance user awareness, and fuel their overall mission to enact change within
the industry.
Supply Chain Management
So how can a company leverage social media to improve their supply chain
management? By staying connected. At its core social media is used to share content, build
relationships, and sell products. Through this powerful tool, Fairphone is able to leverage data
from consumers and vendors to make informed decisions.
Depending on the company and its complexity, a supply chain, in its simplest form,
encompasses the company itself, their suppliers, and customers. This system or operation starts
with sourcing raw materials to final delivery of said product or service to the end user (Corporate
Finance Institute, 2023).
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Social media would allow Fairphone to enhance communication with consumers,
generate demand (with the help of influencer marketing), increase productivity, build
relationships with vendors within the supply chain, stay current on consumer trends related to
sustainability, and generate ideas to improve supply chain management operations.
Ethical Labor
As mentioned above, social media connects people. All types of people use it– including
companies. Fairphone is able to source new vendors, distribution centers, suppliers,
manufacturing plants, IT services, and more through social media. It is a place for companies to
connect and build partnerships and showcase what makes their company and initiatives unique.
According to the Business of Sustainability Index by GreenPrint “66% of US consumers
and 80% of young US adults (18-34) surveyed are willing to pay more for sustainability
products”. In the same survey, they also found that 78% said that although they want to support
businesses who are promoting sustainability practices and products, they have a hard time
identifying environmentally friendly companies (Sustainable Brands, 2022).
This statistic in itself presents a huge opportunity for Fairphone to partner with social
media influencers to market not only their products and the features but grow their online
presence with target audiences that they may not have reached otherwise.
Marketing
Throughout Fairphone’s history, they have launched numerous social media campaigns,
but never with an endorsed celebrity or media influencer. When influencer marketing first took
off, it was full of celebrity endorsements through commercials, social media partnerships, and
billboard ads. Nowadays, anyone can emerge as an influencer, on any platform, and within any
industry.
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Influencer marketing at its core, is a type of social media marketing that uses
endorsements and product mentions from influencers–people who have a dedicated social media
following and are viewed as experts in their field or niche by their followers (Sprout Social,
2023). Touching again on the survey produced by Business of Sustainability Index, it also noted
that 30% of those surveyed have a hard time believing companies when they say they are
committed to sustainable practices and products (Sustainable Brands, 2022). The glaring issue
here is brand recognition and trust.
Think to yourself, why do you follow strangers on social med
