The whole strategy for further development of MDF is based on the
philosophic pyramid presented below. The aim of this pyramid is to illustrate
the intention and business world outlook of MDF as a complex of institutions
providing both financial and non-financial services to its customers by having
a vision to become a leading microenterprise development institution in
Selection of business-oriented partner
To effectively realize its mission and efficiently achieve its vision
MDF realizes that further development and expansion is realistic in case if MDF
collaborates with business-focused customers.
On the top of the pyramid, i.e. in the center of MDF’s strategy, stands
the ideology that the business is to be run in a way, which leads to creation
of competitive advantages in the communities. In other words, MDF will realize
its strategy, which is oriented to community, rather than separate person. MDF
believes that in this way its mission will be realized in a better way.
In terms of the subject strategy all customers of MDF (and the customers
of KAMURJ, as well) are considered as partners.
Selection of product-oriented donor
Effective collaboration with donor companies (both local and
international) is in the center of MDF’s attention. Within this strategy MDF
streams to establish strong relationship with the existing donors, and to
attract new donors, as well.
Community is the main beneficiary instead of a
The second layer of the philosophic pyramid states that the attention of
MDF’s strategy is focused on the community as a main stakeholder rather than a
separate person as a customer. This means MDF intends to encourage the
establishment of cooperatives in different regions of Armenia and to
collaborate to those cooperatives by providing financial and non-financial
services. Those cooperatives will consist of different farmers / households
located within the same region.
Apart from the business intention the subject strategy has a
non-business intention, which is to develop the communities of Armenia. In
terms of this strategy it is considered that in the result of community
development the potential customer base will increase as well.
To note that for effective implementation of this strategy and for
establishing cooperatives in different regions of Armenia specific researches
are to be conducted by MDF to reveal the spheres for further development in the
Borrowing vs. Non-Borrowing Customers
The lowest layer of the pyramid consists of the customer base and
services of MDF. In other words the strategy can come into life only due to the
customers of MDF, who will utilize MDF’s financial and non-financial services
on regular basis. It is known that there is a strong relationship between these
two wings of MDF: the customers utilizing financial services of MDF are
targeted customers for the Non-financial wing of MDF, and the existing
customers benefiting from the non-financial services of MDF are targeted
customers for financial wing of MDF.
By putting together these two wings of the MDF an effect of synergy will
occur, which can play vital role in terms of competition, market positioning
and win-win commitment of MDF’s activity.
noteworthy to mention that the lowest layer of the pyramid is the basis for the
whole strategy and by strengthening this layer MDF will be able to implement
its strategy effectively and efficiently.