This book focuses on the Base of the Pyramid (BOP) in Africa and examines the role of the private sector in the fight against poverty. The BOP concept, which is a market-based approach to poverty eradication, presents a great avenue for businesses to develop opportunities and new business models that enable and empower those in the BOP population in Africa to raise their socio-economic welfare and well-being. The BOP market and the business interest in the BOP in Africa is rising. This book furthers our understanding of the characteristics of BOP markets in Africa, and the challenges and opportunities to address poverty and development in a sustainable manner. The book covers various themes of BOP markets and their embeddedness in social-cultural settings in Africa. The different chapters employ a variety of theoretical and methodological approaches to advance research and practice of BOP in Africa. The book chapters reflect multiple diversities that characterise sub-Saharan Africa based on studies in 13 country contexts and from five industry sectors. This book is recommended reading for managers and policy makers, as well as students and academics interested in Base of the Pyramid markets.
The Innovation and Sustainability in Base of the Pyramid Markets series comprises four volumes, covering theoretical perspectives, themes, and various aspects of interest across four key geographical regions where Base of the Pyramid (BOP) markets are located – Latin America, Asia, Africa, and affluent countries. This book focuses on the BOP markets in Asia, and in particular the challenge of how to address the needs of deprived population groups in a sustainable manner. Base of the Pyramid Markets in Asia deals with, amongst other topics, the innovation and innovativeness that is necessary to better the life of resource-poor population groups. The book covers various themes and aspects of BOP markets in Asia and their embeddedness in socio-cultural settings, and adopts a variety of theoretical angles for analysing the phenomena. Thus, this book aims at furthering our understanding of BOP markets in Asia and at deriving valuable recommendations for managers and policy makers. BOP markets face unique challenges and private sector actors alone cannot ensure sustainable value creation activities. Multidimensional elements and factors are needed to alleviate poverty and create economic development aligned with principles of sustainable development. Therefore, the book comprises critical and empirical studies as well as conceptual papers on the challenges linked to BOP markets in Asian countries. This book is recommended reading for managers and policy makers, as well as students and academics interested in Base of the Pyramid markets.
Brand management to sustain corporate reputation and customer loyalty is essential for both multinationals and indigenous fi rms in Africa. This book provides a practical overview of country branding and positioning activities in Africa, based on a broad defi nition of base of the pyramid (BoP) marketing, which includes both goods and services, as well as business-to-business marketing, corporate branding, and country branding. The text highlights branding strategies that can be adopted in BoP markets, as well as marketing mix strategies appropriate for much of the continent. Taking into account the role of social networks, culture, and religion, the book explores avenues for developing and building competitive advantage, and how African countries can leverage country branding as part of the development process. The book is ideal for researchers, educators and advanced students in international marketing, management, and brand strategy who are interested in the unique branding characteristics of the African continent.
Brand management to sustain corporate reputation and customer loyalty is essential for both multinationals and indigenous fi rms in Africa. This book provides a practical overview of country branding and positioning activities in Africa, based on a broad defi nition of base of the pyramid (BoP) marketing, which includes both goods and services, as well as business-to-business marketing, corporate branding, and country branding. The text highlights branding strategies that can be adopted in BoP markets, as well as marketing mix strategies appropriate for much of the continent. Taking into account the role of social networks, culture, and religion, the book explores avenues for developing and building competitive advantage, and how African countries can leverage country branding as part of the development process. The book is ideal for researchers, educators and advanced students in international marketing, management, and brand strategy who are interested in the unique branding characteristics of the African continent.
The Frugal Innovation and Bottom of the Pyramid Markets series comprises four volumes, covering theoretical perspectives, themes and various aspects of interest across four key geographical regions where BOP markets are located - South America, Asia, Africa and more engineered countries. BOP always addresses the poorest people or socioeconomic order or groups within a country, society, region or continent, thus, this series contributes a profound understanding of BOP markets across the most important geographical areas around the world and presents valuable insights on how the private sector can work together with other stakeholders to develop and operationalize economically viable business models in BOP markets, all the while contributing to sustainable development. Private actors such as multinationals, SMEs and entrepreneurs have a critical role to play in achieving the Sustainable Development Goals agenda as laid down by United Nations in September 2015. Yet, BOP markets face unique challenges and the private sector alone cannot orchestrate sustainable value creation activities. Each volume presents several theoretical strands that highlight the diverse approaches and solutions to developing BOP markets further. Frugal, reverse and inclusive innovations can foster (sustainable) development and provide new business models and value streams that other countries can also benefit from. A variety of stylistic elements, such as research work, interviews and roundtable discussions, offer a wide and vivid impression of ongoing challenges and fruitful solutions.
Considers the four billion low-income consumers which constitute the majority of the world's population, and how to better meet their needs, increase their productivity and empower their entry into the formal economy.
The world's most exciting, fastest-growing new market is where you least expect it: at the bottom of the pyramid. Collectively, the world's billions of poor people have immense untapped buying power. They represent an enormous opportunity for companies who learn how to serve them. Not only can it be done, it is being done--very profitably. What's more, companies aren't just making money: by serving these markets, they're helping millions of the world's poorest people escape poverty. C.K. Prahalad's global bestseller "The Fortune at the Bottom of the Pyramid," now available in paperback, " "shows why you can't afford to ignore "Bottom of the Pyramid" (BOP) markets. Now available in paperback, it offers a blueprint for driving the radical innovation you'll need to profit in emerging markets--and using those innovations to become more competitive "everywhere." This new paperback edition includes eleven concise, fast-paced success stories from India, Peru, Mexico, Brazil, and Venezuela--ranging from salt to soap, banking to cellphones, healthcare to housing. These stories are backed by more detailed case studies and 10 hours of digital videos on whartonsp.com. Simply put, this book is about making a revolution: building profitable "bottom of the pyramid" markets, reducing poverty, and creating an inclusive capitalism that works for "everyone." Preface xi About the Author xix Part I: The Fortune at the Bottom of the Pyramid 1 Chapter 1: The Market at the Bottom of the Pyramid 3 Chapter 2: Products and Services for the BOP 23 Chapter 3: BOP: A Global Opportunity? 47 Chapter 4: The Ecosystem for Wealth Creation 63 Chapter 5: Reducing Corruption: Transaction Governance Capacity 77 Chapter 6: Development as Social Transformation 99 Part II: Business Success Stories from the Bottom of the Pyramid 113 Financing the Poor 115 Aravind Eye Care-The Most Precious Gift 131 Energy for Everyone 137 Agricultural Advances for the Poor-The EID Parry Story 149 Retail for the Poor 159 Information Technology to the Poor 169 The Jaipur Foot Story 187 Health Alerts for All 191 Transparent Government 201 The Annapurna Salt Story 213 Homes for the Poor-The CEMEX Story 221 From Hand to Mouth-The HHL Soap Story 235 Part III: On the Web at Whartonsp.com Video Success Stories Casas Bahia CEMEX Annapurna Salt Hindustan Lever Jaipur Foot Aravind Eye Care ICICI Bank ITC e-Choupal EID Parry Voxiva E+Co/Tecnosol Andhra Pradesh Full Success Case Stories in pdf format The Market at the Bottom of the Pyramid Known Problems and Known Solutions: What Is the Missing Link? Known Problems and Unique Solutions Known Problems and Systemwide Reform Scaling Innovations Creating Enabling Conditions for the Development of the Private Sector The EID Parry Story Biographies of the Researchers/Writers of the Success Case Stories from "The Fortune at the Bottom of the Pyramid" 247 About the Video Success Stories 255 Index 257
This book presents an empirical investigation of the efforts that multinational pharmaceutical companies take in order to find a business model that allows for a profitable access to the Bottom of the Pyramid (BoP) markets. The Bottom of the Pyramid in Africa is frequently mentioned as an attractive market due to its sheer size. Yet most companies struggle to access it because of the low price level, difficult physical market access and challenges when it comes to payment. More specifically, the book investigates the following business model-related questions: Do pharmaceutical companies provide products that meet the needs of the BoP? What characterizes the value generation of the company? What revenue model leads to a profitable business, and what role does a network of partners play in the business model? Findings reveal that there is no ‘one-size-fits-all’ answer to these questions. Providing continuous availability, affordability at a good quality of goods and services, creating health awareness, as well as localizing business to achieve a level of inclusiveness are essential prerequisites for success. In the last chapter this book provides a business model prototype that accounts for these key success factors for business at the Bottom of the Pyramid and points to further research topics.
This research was designed to provide insight into South African financial companies' activities among the poor or the BOP (Base Of the Pyramid). South African businesses should build resources and capabilities with a strategic intent to create and exploit the traditionally under serviced markets while delivering goods and services that are of value. In doing so, managers, marketers and business leaders should view the South African adult population as households and not individual decision makers. The aim of this study was to determine the applicability of an equal partnership model for the BOP engagement in the South African economy. In the investigation of the equal partnership model, it was found that the participants (including the BOP as producers or consumers, business, local community members, nongovernmental organisations and local government) could derive mutual value. This mutual value can be described as the enhancement in growth for the business, raising the BOP out of poverty, involving the poor in the economy and boosting national economic growth (through job creation, tax revenue and investment). Findings of this research supported the aspects of resource commitment, experiential preparation, innovation and technology use in product or services together with mutual value creation for all partners (especially the poor). In addition, there was support for the different levels of risk taken by the partners, responsibilities expected from participants, the sustainability of the collaboration and the required depth of understanding of BOP circumstances. Bank managers responded positively to there being value at the level of the poor (such as profits, poverty alleviation and improved reputation). The collectivist nature of the poor in South Africa (in that the poor carry out financial decisions at the household level) was not established in this research and needs further investigation.
