What should the expansion strategy be for Guatemala-based Kingo, a provider of off-grid renewable energy?
Co-founded in 2013 by Juan Fermín Rodríguez and Matías de Tezanos, Guatemala-based Kingo provided off-grid renewable energy to people living without electric power. Its primary product was an innovative solar panel unit, called a solar home system (SHS), installed on the roof of each customer’s house. Employing an Energy-as-a-Service model, Kingo owned the SHS units and installed them free of charge. The customer paid daily, weekly, or monthly for a code to unlock the unit. Kingo was responsible for maintaining the unit and replacing it with a new version every four years at no cost to the customer. After a successful pilot program, Kingo launched commercially in Petén, Guatemala’s largest region, in 2015. By 2017 the co-founders believed Kingo was about to enter into a hypergrowth mode and considered three options for expansion: organic growth in Central America; franchise opportunities in South Africa, and; joint venture opportunities in Colombia. In this case students are provided with data on energy delivery methods, Kingo’s funding, and Kingo’s growth projections—and are asked to consider the optimal growth strategy for the company, its investors, and its potential customers.
Case ID: 190302
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