Determinants of Success
Reasons behind Toyola’s success: One of the major elements of Toyola’s success has been its local supply chain. By creating a network of multiple local component suppliers, Toyola cuts down on import costs, no longer has to be concerned with production issues, and has a diverse set of suppliers to mitigate supply shortages. Ultimately, Toyola does not produce stoves, but distributes and markets them. Because most of their effort is placed on marketing and quality assurance, they have obtained a large portion of the stove market and continue to grow.
Toyola is well aware of its clientele’s needs. This awareness helped them identify a demand for solar lighting products. Toyola now also sells 200 to 500 solar lanterns and 5W solar systems for lighting. About 90 percent of their products come from Barefoot Lighting in Australia. The rest come from local providers including Deng Limited, Wise Energy and Solar Light. These products offer savings on lighting bills, eyes sight protection, improved livelihoods, and improvement in education, as children are able to study after sunset.
Another important element is the type of technology that makes up the company’s core business. Almost all Ghanaians already use charcoal/wood stoves, so Toyola does not need to explain what their product is or how to use it, just that their stoves will help the end-user save money and time. Since the stove does, in fact, save end-users a noticeable amount of money, the product is primarily promoted via word-of-mouth.