The participation of businesses and major corporate companies in poverty stricken lower income markets has been met with opposing, and at times controversial views. The Bottom of the Pyramid proposition is one such idea that encourages business people to get involved in the market. However, the commercial viability of the BOP proposition has yet to be proven. The literature review from this study focuses on the ideas surrounding the appropriate business models that have been put forward through academic literature in order for companies to operate successfully in the lower income market segment. Consequently, the literature also focuses on the developments of the BOP proposition as it relates to the business proposed models. Specific attention is paid to the areas of innovation and replication as strategic focus areas within the BOP business models. The research seeks to highlight the fact that the BOP market segment is a commercially viable market for companies to pursue, and that the business model focus for companies should be centred around the dual application of innovation and replication principles as part of the company’s business model. The research study made use of interviews with expert executives and supporting documentary evidence from two case study organisations from within the FMCG industry in South Africa. The results of the research were documented and used to address the primary and secondary research objectives. The research findings ultimately enabled the author to construct a model, which companies interested in pursuing the BOP market could implement in order to operate profitably within the BOP market segment. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Yes / Corporate social responsibility has been seen by corporations as a practice to adopt as an act of philanthropy. There have been attempts to expand the role of social responsibility to business problems however there has never been an attempt to consider the strategic alignment of social outcomes to strategy. This article analyses the role of strategy by providing a review of strategy using Whittington’s generic strategies model and expanding the same model to incorporate a social strategy model that supports the anecdotal idea that social responsibility can be potentially strategic. The paper centres its argument within the Indian context.

Développer de nouveaux produits pour les consommateurs à très faibles revenus d’Afrique Subsaharienne est un enjeu majeur pour les entreprises mondialisées. Un enjeu qui relève de la relation interculturelle comme l'affirme le courant du "Bottom of the Pyramid" (BoP). Une relation interculturelle que le courant essentialiste explique par la réduction de la distance entre des variables d'innovation. La thèse adopte une perspective constructiviste de la relation interculturelle dans le processus d'innovation: la différence naît de la rencontre. En effet, l'écosystème BoP est très dynamique et hautement ambivalent. Nous cherchons à savoir si dans cet écosystème aimer, comme modèle culturel de la dynamique de la relation, est un modèle plus robuste de la relation interculturelle que le modèle de la distance. L'étude de cas a pour objet le développement d'une solution de paiement mobile dans une banque mondialisée pour des marchés d'Afrique Subsaharienne. L'analyse des données est faite grâce à une grille qui se fonde sur la "Practice Based View" et les théories de l'action. Malgré de bonnes idées, des ressources à foisons et des leaders forts, les données font apparaître le défaut de résolution efficace de fortes ambivalences. Nous écartons la réduction de la distance comme variable explicative majeure, car plus les obstacles s'accumulent, plus le dialogue, qui résout la distance selon le courant essentialiste, est évité. Par un raisonnement abductif, qui s'appuie sur une étude de la dynamique de la relation dans ses dimensions cognitives et affectives culturalisées, nous montrons qu'aimer est cette relation hautement intégrative qui fait défaut dans cet environnement spécifique. / New product development for the markets of the very low-income customer of Sub-Saharan Africa is a major stake for globalized companies. This stake pertains to intercultural relationship as claimed by the scholars belonging to the "Bottom of the Pyramid" (BOP) stream. The essentialist current explains intercultural relationship by the reduction of distance between the variable of innovation (resources commitment, capabilities of actors, senior management involvement). This thesis adopts a constructivist perspective of the intercultural relationship in the innovation process: the difference emerges out of the encounter. Indeed, the BoP ecosystem is very dynamic and highly ambivalent. We want to know if in this ecosystem, love as a cultural model of the dynamics of the relationship, is a more robust model of intercultural relationship than the model of distance.The case study has for object the development of a solution of mobile payment in a global bank for Sub-Saharan African markets. Data analysis is done through a grid based on the "Practice Based View" and action theory. Despite good ideas, extensive resources and strong leaders, the data reveal strong ambivalences solved inefficiently. We close the option of distance reduction as main explanation for the more obstacles arise in the project, the more the dialogue, that is supposed to solve distance, is avoided. By abductive reasoning, based on a study of the dynamics of the relationship in its culturalized cognitive and affective dimensions, we show that loving is this highly integrative relationship that is lacking in this specific ecosystem.

Bakgrund: Mer än två tredjedelar av befolkningen i Sub-Sahara i Afrika lever idag i energifattigdom, vilket har drabbat de fattigaste på BoP-marknaderna värst. Tidigare forskning har visat att företagande inom energibranschen kan stimulera en ekonomisk tillväxt på BoP-marknaden i Sub-Sahara. Tack vare den afrikanska kontinentens många soltimmar finns idag incitament till företagande inom solenergi inom regionen. Genom försäljning av solenergitjänster kan energifattigdomen i Sub-Sahara bekämpas och BoP-marknaden ta sig ur fattigdomen. För att möjliggöra detta behöver målkonflikter mellan fattiga kunder och företagens finansiella hållbarhet harmoniseras. Syfte: Syftet med denna studie är att analysera affärsmodeller hos nuvarande solenergiföretag för att därefter konceptualisera förslag på framtida affärsmodeller, som är avsedda att inspirera solenergiföretag till hur de bör utforma sina affärsmodeller för att etablera sig på BoP-marknader i Sub-Sahara på lång sikt. Metod: Metoder som används i undersökningen är kvalitativa metoder utifrån en induktiv ansats, som innefattar data från intervjuer och sekundära källor från tidigare forskning och statistik. Genom ett styrt och strategiskt urval har relevanta intervjupersoner valts ut. Affärsmodellen Business Model Canvas används som ett konceptualiserande verktyg för analysen, diskussionen och slutligen slutsatsen. Slutsats: Studiens fynd visar vikten av kulturell förståelse för BoP-kunder, vilket har visat sig vara en grundläggande aspekt i solenergiföretagens affärsmodeller. Genom kulturell förståelse kan solenergiföretagen utforma affärsmodellerna enligt rätt värdeerbjudande och värdeskapande, vilket skapar långsiktiga affärsmodeller. Detta kan gynna framgångsfaktorer som bland annat ökade marknadsandelar och minska resursbrister. Detta harmoniserar målkonflikter mellan fattiga BoP-kunder med betalningssvårigheter och solenergiföretag som vill uppnå finansiell hållbarhet. / Background: More than two thirds of the population in Sub-Saharan Africa currently live in energy poverty, which has affected the poorest of the poor on the BoP-markets the worst. Previous research show that businesses within the energy sector could stimulate economic growth on the BoP-market in Sub-Saharan. The African continent creates, thanks to its many sun hours, incentives for business within solar energy in the region. Through sales of solar energy services, the energy poverty in Sub-Saharan can be abolished and in turn help the BoP-market out of poverty. To enable this, the conflicts of interests between poor customers and the financial sustainability of the solar energy companies need to be harmonized. Purpose: The purpose of this study is to analyze business models of existing solar energy companies, to conceptualize proposals for future business models, which are intended to inspire solar energy companies in how they should develop their business models to establish themselves on the BoP-markets in Sub-Saharan in the long run. Method: The methods used in this study are qualitative studies from an inductive approach, including interviews and secondary data. Through controlled and strategic selection, the interviewees were selected. The Business model Business Model Canvas is used as a conceptualizing tool for the empirical results and analysis, discussion, and conclusion. Conclusion: The results show the importance of cultural understanding within the BoP-customers, which lays the foundation for the business model. Through cultural understanding, solar energy companies can shape their business models according to value delivery and value creation, which creates long term business models. This can benefit the factors of success, such as increased market share as well as decrease the risk of repayment issues, lack of human capital and personnel. This harmonizes the conflict of goals between poor BoP-customers with payment difficulties and solar energy companies wanting to achieve financial sustainability.

In an attempt to increase opportunity and quality of life for people living in poverty,governments and non-government organisations (NGOs) sell and donate products to developing countries. Typically, these are essential household items such as cook stoves, water filters and solar lighting. However, to date there has been limited research into the uptake and long term effectiveness of these products and few methods or tools are available to guide the product development process. This has resulted in a number of well documented product failures as a result of poor design choices. To overcome this problem and provide guidance to future or existing designers and NGOs this research investigated the factors required for long lasting and effective product design. This was carried out through the use of a literature review, the analysis of 64 products, a survey, interviews with product designers, and a case study with a Social Enterprise in Myanmar (Burma). The information gathered was analysed and used to create a framework consisting of various tools to guide designers and NGOs. Specifically, the research focused on the creation of a taxonomy of products designed for developing countries and an assessment method consisting of eight critical indicators for product success. These were presented as a website, set of cards and book which guides and assists designers during the process to ensure that future products are appropriate and to prevent current unacceptable levels of waste. Following the creation of the framework it was evaluated by students, practitioners and existing product users in Myanmar. The findings revealed that participants felt the assessment method and indicator cards were beneficial during the design process and assisted them in the development of more suitable and appropriate products.

Microfranchising is emerging as a potentially powerful strategy for reaching the enormous markets at the base of the pyramid (BOP). Microfranchising also represents an effective and sustainable way to contribute to poverty alleviation and economic growth. However, we know little about how organizations maneuver contradictory forces as they use this innovative business model to engage the BOP. To address this gap, I offer a longitudinal case study of an emerging microfranchise effort by a successful Mexican agribusiness—one whose ambitions to continue growing were challenged by multinational agrochemicals suppliers. As this project shows, companies and BOP markets can realize mutual benefits from a value co-creation strategy. Specifically, I adopted a dialectical approach to analyze the tensions and competing forces that arose as business managers and local BOP distributors and producers collaborated in this emerging microfranchising venture. As a result, the research offers three contributions. First, it provides a detailed empirical account of how contradictory forces shaped the Mexican agricultural firm’s implementation of microfranchising to engage with BOP farmers. Second, it presents a conceptual synthesis that describes the major contradictory forces a company faces as it implements microfranchising as part of its BOP strategy. Finally, it offers lessons for how business managers can maneuver contradictory forces to co-create value with the BOP through microfranchising.

Microfranchising is emerging as a potentially powerful strategy for reaching the enormous markets at the base of the pyramid (BOP). Microfranchising also represents an effective and sustainable way to contribute to poverty alleviation and economic growth. However, we know little about how organizations maneuver contradictory forces as they use this innovative business model to engage the BOP. To address this gap, I offer a longitudinal case study of an emerging microfranchise effort by a successful Mexican agribusiness—one whose ambitions to continue growing were challenged by multinational agrochemicals suppliers. As this project shows, companies and BOP markets can realize mutual benefits from a value co-creation strategy. Specifically, I adopted a dialectical approach to analyze the tensions and competing forces that arose as business managers and local BOP distributors and producers collaborated in this emerging microfranchising venture. As a result, the research offers three contributions. First, it provides a detailed empirical account of how contradictory forces shaped the Mexican agricultural firm’s implementation of microfranchising to engage with BOP farmers. Second, it presents a conceptual synthesis that describes the major contradictory forces a company faces as it implements microfranchising as part of its BOP strategy. Finally, it offers lessons for how business managers can maneuver contradictory forces to co-create value with the BOP through microfranchising.

Cette thèse de doctorat étudie la façon dont les organisations, en particulier les entreprises sociales, créent et mettent en œuvre des technologies de l'information et de la communication (TIC) pour les populations vivant "au bas de la pyramide" (BoP) et comment de tels projets permettent de lutter contre l'exclusion (ICT4D). Ce travail de recherche est basé sur des données recueillies à partir de deux organisations situées en Inde, l'une opérant principalement dans les zones rurales et l'autre dans les milieux urbains. Ces deux organisations ciblent principalement les populations marginalisées, et opèrent dans un marché strictement réglementé. Ces données ont été collecté principalement à partir d'approches qualitatives. comprenant des interviews, et des documents d'archives. Après un chapitre introductif présentant les motivations et spécificités de ce travail, cette thèse est composée de trois articles. Le premier article explique comment les entreprises sociales répondent à la fois à une mission sociale et une mission de profit, en fournissant des services TIC aux populations marginalisées. Cet article explique comment les entreprises sociales utilisent différentes formes de bricolage pour faire face aux défis liés aux ressources disponibles et aux contraintes réglementaires. Le deuxième article examine l'importance des composants d'un modèle d'affaire dans la fourniture de TIC. Cet article suggère que, en plus de la proposition, l'architecture et la finance, le réseau "innofusion" et la valeur de co-création sont deux éléments supplémentaires essentiels à un modèle d'affaire pertinent pour les communautés marginalisées. Le troisième article propose une théorisation du rôle de l'innovation inclusive (une forme d'innovation émergente pour les marchés à faible revenu) pour permettre le développement des communautés marginalisées. Cette approche propose de tenir compte (1) du rôle des institutions financières dans les zones rurales et (2) de la prolifération rapide des TIC pour faciliter l'innovation inclusive, en prenant pour exemple les femmes en milieu rural. Enfin, cette thèse offre plusieurs contributions théoriques et pratiques. Tout d'abord, en mobilisant le concept de bricolage, cette recherche fournit des indications utiles à la compréhension des TIC pour les populations marginalisées, en particulier dans un contexte de ressources limitées et d'environnement restrictif. Le deuxième article propose également une contributions théorique majeure puisqu'il souligne l'importance des composants d'un modèles d'affaire en proposant l'addition de deux nouveaux composants pour l'introduction des TIC au sein des populations marginalisées à savoir le réséau innofusion, et la co-création de valeur. Et le troisième article fournit une analyse précise et détaillée de l'innovation inclusive pour les populations marginalisées. Enfin, cette thèse suggère aux professionnels comment structurer leurs opérations et leurs modèles de revenus pour des populations à faible revenu. De manière générale, cette thèse ouvre la voie pour l'étude des populations marginalisées, en terme de recherche en système d'information, qui a reçu jusqu'alors une attention trop limitée / This dissertation investigates how organizations (specifically social enterprises) create and implement information and communication technologies for development (ICT4D) projects for the people at the bottom of the pyramid (BoP) and how such initiatives achieve scale. Building upon the case of mobile money in India, it explains how organizations develop ICT4D projects for the BoP, and explores the issues of business models, inclusivity and scaling in such projects. It is based on data collected from two organizations, one with operations mainly in rural areas and the other one in an urban setting. These organizations which primarily target marginalized communities, operate in a strictly regulated market, and face initial resource challenges. The data is collected from multiple sources, including interviews and archival material such as organizational records, annual reports, formal project reports, etc. Following the introductory chapter, the dissertation comprises three related papers. The first explains how social enterprises that have both a social and a profit mission, provide ICT-enabled services to the people at the BoP and achieve scale. It discusses how ICT social enterprises employ different forms of bricolage to cope with resource challenges and regulatory constraints and scale up. The second paper examines the role of business models in providing ICTs to the BoP and discusses the key components of such business models. It proposes that in addition to the previously discussed value proposition, value architecture and value finance components, innofusion network and value co-creation are also crucial components of such business models due to the specific characteristics of the BoP communities. The final paper of this dissertation theorizes the role of inclusive innovation (an emerging form of innovation in low income markets) in enabling development for marginalized communities. Taking into account 1) the role of micro financial institutions in rural areas and 2) the rapid proliferation of mobile technologies, it studies the ways in which micro financial institutions leverage mobile technologies to facilitate inclusive innovation in marginalised communities, specifically those for women. The dissertation offers contributions to theory and practice. First, by investigating bricolage, it provides useful insights into understanding aspects of scaling for ICT social enterprises, particularly in resource constrained and restrictive environments. Second, it discusses the particular importance of business models for the BoP. Given the specificities of BoP communities, I propose five key dimensions of business models that are appropriate for delivering ICTs. Extending this, the third paper also proposes contributions to the emerging field of inclusive innovation and provides a novel way to understand innovation in marginalised communities. The dissertation also provides practitioners (that deal with BoP communities) useful insights into the ways in which they might structure their operations and revenue models and deal with the partners they could engage with to expand and scale. Finally, this dissertation argues for more focus on marginalised communities such as women in rural areas that have received limited attention in IS research

There are 4 billion poor living on 2 dollars or less per day that make up the bottom of the economic pyramid (BOP). If a company calculates their aggregated purchasing power they could be a huge and profitable market. By studying the roles of the different actors and their pre-conditions in BOP-markets the purpose with this thesis is to find out how the private sector can pursue a sustainable market development strategy at the bottom of the economic pyramid and if it really will help to reduce poverty.

<p>There are 4 billion poor living on 2 dollars or less per day that make up the bottom of the economic pyramid (BOP). If a company calculates their aggregated purchasing power they could be a huge and profitable market.</p><p>By studying the roles of the different actors and their pre-conditions in BOP-markets the purpose with this thesis is to find out how the private sector can pursue a sustainable market development strategy at the bottom of the economic pyramid and if it really will help to reduce poverty.</p>