Thesis (MScEng (Industrial Engineering))--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: The Bottom of the Pyramid (BoP) population are those individuals who live under the poverty line. They often do not have easy access to products and services, because the infrastructure to serve them is not in place and most organisations consider the challenges of the BoP overwhelming and unconquerable. The primary objective of this research is to develop a framework that guides an organisation through the design of a business model, which will allow them to expand into the BoP population Organisations face constant pressure to increase their market share and profits, and improve their performance in the current aggressive environment. To retain their competitiveness they have to look at unconventional and alternative markets. By recognising the BoP as a potential emerging market, organisations can increase their market share or enter new markets, thereby creating benefits for organisations and the BoP alike. The reasons why organisations fail when targeting the BoP market are also identified in this research. These reasons include aspects like organisations making assumptions about the BoP, not understanding the BoP, not knowing how to approach the BoP market and being ignorant in designing a business model tailored for the BoP market. This research addresses the difficulties organisations face when they want to target the BoP by developing a framework that allows an organisation to successfully target the BoP population. This framework also fulfils the secondary objective of this research, which is to adhere to the three goals of Sustainable Development: • Fair treatment of all people: Giving all people, regardless of their level in the economic pyramid, equal access to products and services. This is the foundation for social equity. Including the BoP in economic activity by overcoming the constraints the BoP face; • To not degrade the environment through sustainable design; • Economic growth and development to ensure the organisation makes a profit. Four primary research fields – Sustainable Development, Bottom of the Pyramid literature, Business Models and Blue Ocean Strategy – were investigated and then aspects of these fields were merged to form the Business Model Development Strategy. This framework offers a systematic approach for organisations to first analyse and understand all aspects of the BoP and their environment, and then develop a business model that fulfils the core requirements of the BoP. It was found that if organisations want to successfully target the BoP, they have to fulfil the 4 A’s – Acceptability, Awareness, Availability and Affordability – which are the core needs and requirements of the BoP. Using the Business Model Development Strategy as guideline, organisations can design a business model that minimises the risk of failure when they target the BoP, while maintaining the principles of Sustainable Development. / AFRIKAANSE OPSOMMING: Die term Bottom of the Pyramid (BoP) verwys na diegene in die bevolking wie ‘n bestaan voer onder die armoedelyn. Vanweë die feitdat die nodige infrastruktuur nie aan hul behoeftes voldoen nie, en ook dat meeste organisasies hul uitdagings as oorweldigend en selfs onoorkombaar beskou, het die BoP bevolkingdikwelsnietoegang tot sekeredienste en produktenie, Die primêre doel van hierdie navorsingstuk is om ‘n raamwerkte skep wat organisasies deur ‘n unieke ontwerp van ‘n besigheids model sal lei. Hierdie model sal organisasies in staat stel om hul dienste uit te brei en sodoende ook die BoP bevolking te bereik. Organisasies ervaar gedurig druk om hul markaan deel en wins tevergroot en omtefloreer in onstuimigeekonomieseklimaat. Om hul mededingendheid te verseker, moet organisasies hul blik werp na ongewone en alternatiewe markte. Deur die BoP as ‘n potensiële ontluikende mark teerken, kan organisasies hul markaandeel vergroot, of selfs nuwe market betree en in die proses voordele skep vir organisasies sowel as die BoP. Hierdie navorsingstuk sal ook die redes ondersoek waarom organisasieson suksesvol is wanneer hulle die BoP mark betree; hierdie redes sluit in, ondermeer, dat organisasies aannames maak oor die BoP, hierdie mark glad nie verstaan nie, onbekwaam is wanneer hulle die BoP mark betree en nie weet hoe om ‘n besigheidsmodel te ontwerp spesifiek vir die BoP mark nie. Die navorsing vervat in hierdie tesis oorbrug die struikel bloke wat organisasies in die gesig staar wanneer hulle die BoP mark wil betree, deur die ontwerp van ‘n raamwerk wat sulke organisasies in staat stel om die BoP bevolking suksesvol te betree. Hierdie raamwerk voldoen ook aan die sekondêre doel van hierdie navorsingstuk, om die drie uitgangs punte van Volhoubare Ontwikkeling te ondersteun: • Die regverdige behandeling van alle mense: om aan alle mense, ongeag hul posisie binne die ekonomiese piramide, gelyke toegang te gee tot produkte en dienste. Hierdie is die beginsel van sosiale billikheid. Om verder die BoP in te sluit in ekonomiese aktiwiteite deur aan hul behoeftes te voorsien; • Om, deurmiddel van volhoubare ontwerp, geen skade aan die natuurlike omgewing aan te bring nie; • Om ekonomiese groei en ontwikkeling aan te moedig om te verseker dat die organisasie telkens ‘n wins maak Vier primêre navorsings gebiede – Volhoubare Ontwikkeling, ‘Bottom of the Pyramid’ literatuur, Besigheids modelle en ‘Blue Ocean’ Strategie – was ondersoek en bymekaar gebring om die Business Model Development Strategie te ontwikkel. Hierdie raamwerk bied ‘n sistematiese benadering aan organisasies om, eerstens, alle aspekte van die BoP en hul omgewing te analiseer en te verstaan, en omvervolgens ‘n besigheidsmodel te ontwikkel wat aan die kern vereistes van die BoP sal voldoen. Daar is bevind dat, indien organisasies suksesvol die BoP wil betree, hulle aan vier kern vereistes moet voldoen – Aanvaarbaarheid, Bewustheid, Beskikbaarheid en Bekostigbaarheid. Hierdie aspekte vorm die kern benodigdhede en vereistes van die BoP. Deur die Business Model Development Strategie as riglyn te gebruik, kan organisasies ‘n besigheidsmodel ontwerp wat die risiko van mislukking sal minimaliseer wanneer hulle die BoP mark betree, terwyl dit die beginsels van Volhoubare Ontwikkeling ten volle ondersteun.

Submitted by Maike Costa (maiksebas@gmail.com) on 2016-03-01T13:54:24Z No. of bitstreams: 1 arquivototal.pdf: 6998873 bytes, checksum: 278430b473952e3ef68aa7673cfd1dd7 (MD5) / Approved for entry into archive by Clebson Anjos (clebson.leandro54@gmail.com) on 2016-03-09T22:28:53Z (GMT) No. of bitstreams: 1 arquivototal.pdf: 6998873 bytes, checksum: 278430b473952e3ef68aa7673cfd1dd7 (MD5) / Approved for entry into archive by Clebson Anjos (clebson.leandro54@gmail.com) on 2016-03-09T22:30:14Z (GMT) No. of bitstreams: 1 arquivototal.pdf: 6998873 bytes, checksum: 278430b473952e3ef68aa7673cfd1dd7 (MD5) / Made available in DSpace on 2016-03-09T22:30:35Z (GMT). No. of bitstreams: 1 arquivototal.pdf: 6998873 bytes, checksum: 278430b473952e3ef68aa7673cfd1dd7 (MD5) Previous issue date: 2015-02-25 / Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - CAPES / The bottom of the social pyramid in Brazil concentrates many people. Innovating the services offered to them means including consumers that were neglected or would otherwise remain poorly assisted by the existing offers, thus potentializing business opportunities to firms that are seeking a new market. In this context, this research aimed to analyze how companies are dealing with service innovation to cater to consumers at the bottom of the pyramid. More specifically, it aimed to identify the innovations adopted by firms, classify the types of innovation and propose a framework to better explain them. Methodology included multiple case studies; three firms that offer services to such public. Data were collected by means of semi-structured interviews, direct observations and documents. Data for each case was both individually analyzed and cross-examined. Results showed that in order to serve the bottom of the pyramid firms have developed market and process innovations, and also implemented – throughout their trajectories – improvement innovation, incremental innovation and formalization innovation. Through the transilience map it was possible to notice that two out of the three firms studied developed new competencies to match the needs of the bottom of the pyramid. In addition, it is understood that there may be an alignment between the transilience map and the disruptive innovation concepts. The three firms showed partial or total adherence to the proposed framework; in some cases, there was a need to change the type of service offered. It was concluded that although disruptive innovations are aimed at a low income consumers it takes more than just those to serve this public. Furthermore, in the cases analyzed, the service sector possesses an innovation dynamics that is contrary to the technical approach, since technology is not the major driver for innovation. However, this element becomes a support that allows for constant improvement in the service offered. / No Brasil há um grande número de pessoas concentradas na base da pirâmide social. Inovar em serviços para atendê-las, significa incluir consumidores que foram deixados de fora ou permaneceriam mal acolhidos pelas ofertas já existentes, potencializando oportunidades de negócios para empresas que buscam um novo mercado. Nesse contexto, o objetivo desta pesquisa consistiu em analisar como empresas estão lidando com as inovações em serviços para atender aos consumidores da base da pirâmide. Especificamente, buscou-se identificar as inovações empreendidas pelas empresas; classificar os tipos de inovação e propor um framework que melhor explique as inovações executadas. Utilizou-se estudo de casos múltiplos como estratégia metodológica, abordando três empresas que ofertam serviços direcionados a tal público. Os dados foram coletados por meio de entrevistas semiestruturadas, observações diretas e documentos. A análise dos dados para cada caso foi empreendida de forma individual e cruzada. Os resultados evidenciaram que, para atendar à Base da Pirâmide, as empresas têm desenvolvido inovações de mercado e de processo e empreendido também, ao longo de suas trajetórias, inovações de melhoria, incrementais e formalizadoras. Por meio do Mapa de Transiliência foi possível perceber que dois dos três casos estudados desenvolveram novas competências para atender à base da pirâmide. Além disso, compreende-se que seja possível o alinhamento entre o mapa de transiliência e os conceitos de inovação de ruptura. Nas três empresas pesquisadas observou-se a aderência parcial ou total ao framework proposto, havendo, em alguns casos, a necessidade de modificações que estão relacionadas ao tipo de serviço prestado. Conclui-se que, apesar de inovações disruptivas estarem direcionadas a um público de baixa renda, as mesmas não são unicamente necessárias para atendê-lo. Ademais, nos casos analisados, o setor de serviços possui uma dinâmica de inovação que vai, muitas vezes, de encontro à abordagem tecnicista, não sendo a tecnologia o maior propulsor para a inovação. Todavia, esse elemento se torna um suporte que permite a melhoria constante do serviço prestado.

This study is concerned with investigating whether corporate social responsibility (CSR) initiatives provide a means to build brand equity, specifically emotional connections known as share of heart, in bottom of the pyramid (BOP) markets. Research has found that brand experiences, positive product outcomes and nostalgia are antecedents to share of heart; however, this presupposes developed markets in which categories have already achieved primary demand.In underdeveloped BOP markets, market expansion is challenging and necessitates investments into social initiatives to increase the welfare of the community. The study proposes the use of CSR initiatives to encourage brand building as consumers were found to form an emotional attachment with brands, which brings about loyalty and intentions to purchase.A correlation study was carried out to determine whether a relationship existed between CSR and emotional attachment and whether this predicts greater intentions to purchase. The research confirmed that CSR is an antecedent to EA; however, the results revealed that certain conditions have to be met before consumers can connect with brands emotionally. The findings also indicated that CSR awareness fosters positive CSR beliefs, whereas consumers‟ emotional attachment towards the brand explains their intention to purchase the brand. Copyright / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

With the increasingly salient role of business in development, the bottom of the pyramid (BOP) approach is sparking great interest in multinational corporations, donor agencies, and academic circles. The BOP proposition holds that profit-generating enterprise-based ventures – typically led by multinational corporations – can reduce poverty and improve the standard of living by offering goods and services to the poor or integrating them in the value chain. BOP as a development strategy is predicated on the “inclusion” of the poor into market to enable them to reap the benefits of greater wealth and prosperity. This thesis critically investigates to what extent BOP interventions contribute to the social inclusion of marginalized groups in developing countries like Bangladesh. The thesis analyzes the case of public access information and communication technologies (ICTs) venues such as telecentres. Such venues provide access to ICTs such as Internet that enable people to access, use and share information and knowledge at an unprecedented level, offering great potential for socio-economic development. Overall, the thesis reveals the limitations in the BOP approach in contributing to inclusion, by showing the contradictions between the economic logic of business and the social imperative of inclusion. Through focusing on a broader view of inclusion, the findings highlight the complex relationship between digital inclusion and social inclusion in developing countries. In particular, the thesis problematizes the notion of “inclusive business”, which, by aiming to integrate the poor as consumers and women as entrepreneurs, serves the purpose of extending the reach of business. Thus inclusive business is rather different from a view of inclusion towards meaningfully contributing to one’s social and economic advancement. The thesis also argues that the various dimensions of inclusion are highly contingent on the business strategies and motivations of corporations as well as meso-level organizational formations. The analysis of corporate strategies uncovers how revenue making considerations are driving BOP interventions at the cost of accountability towards their stakeholders. By interrogating some of the issues silent in the discussions on business and development, such as inequality and exclusion, the work provides a counter narrative to the BOP discourse, raising questions about the uncritical repositioning of business as a development agent.

Increasingly, developed countries' markets, which are usually characterized by wealthy customers, are getting saturated. This has necessitated that multinational corporations (MNCs) seek new solutions for their future growth and profitability. One of the markets that has attracted the attention of MNCs is the bottom of the economic pyramid (BOP), which comprises four billion people. However, reaching this market, characterized as having a low income of less than $2 a day, is not easily achievable. Corporations have to revisit their prior business models and develop winwin solutions that serve the needs of the poor and create profits. To conceptualize the market-based initiatives of MNCs at the BOP, this research employs the concept of corporate social entrepreneurship (CSE). CSE is defined in this research as the process of innovatively identifying and exploiting social opportunities in large and established organizations with the aim of creating economic and social value. The research questions that this dissertation seeks to answer are concerned with exploring the antecedents and outcomes of CSE. First, built upon three related strands of literature - social entrepreneurship, corporate entrepreneurship and corporate social responsibility - this research attempts to provide a preliminary understanding of the potential antecedents and outcomes of CSE. Then, by employing multiple qualitative and exploratory case studies, CSE and its antecedents and outcomes are empirically investigated in eight multinational companies in India. The research identifies demand conditions and stakeholder expectations as the environmental factors that predict CSE. Three organizational characteristics - management support, a network orientation towards social sector organizations, and the availability of financial resources - are also found to be determining factors. The outcomes are identified associal value creation, long-term profitability and legitimacy. These antecedents and outcomes are theoretically explained and supported by contingency theory, the contingent resource-based view and stakeholder theory.

This research study investigates the requirements or factors that will influence the acceptance and impact of mobile phone advertising to the urban Bottom of Pyramid (BoP). The framework incorporated awareness, availability, acceptability and convenience as factors for effective mobile phone advertising. Mobile phones have received unprecedented penetration rates across all markets, including LSM 1-4. This presents companies targeting this market with an excellent advertising medium with which to communicate to consumers. Companies have begun advertising via mobile phone and this research investigates the impact of this advertising, in relation to other more established mediums, as well as the most optimal mobile phone service to be used in delivery of the advertising message. The type of advertising being sent to BoP via mobile phone advertising is analysed, along with the type of advertising the urban BoP market would like to receive and possible differences identified. The research examines the recall of advertising message across various advertising media and comparisons are drawn. The research found that all aspects of the framework were applicable. Convenience and acceptability were seen as the highest drivers for effective mobile phone advertising to the South African urban BoP. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

In and amongst the institutional chaos of Africa lies a wealth of business potential for multinational corporations (MNCs) worthy of entry. This research study investigated the effect of political, regulatory and societal norm aspects of institutions on internationalising MNC, base-of-the-pyramid (BoP), strategies across various emerging economies in Africa. Although there is an abundance of literature on the BoP markets in emerging economies, literature is limited on the construct of strategy internationalisation across African countries through the institutional lens. A qualitative research methodology was used for this study to understand the institutional variables. Individual depth, semi-structured interviews were conducted with eight managers having cumulative experience across ten MNCs. The focus of the study was on the fast-moving consumer goods (FMCG) industry. However, to give the data variance five of the interviewees were employed in the FMCG industry while the others were employed in the consumer electronics, pulp and paper, and mobile telecommunications industries. The research data were analysed using an inductive approach to explore the themes discovered. These themes were: political ties and history, consumer insight, and information and communication technology (ICT). This study confirmed the importance of institutional aspects on BoP strategy internationalisation in Africa. Also, the study discovered a new and remarkable finding that acknowledges the BoP as non-traditional MNC shareholders rather than viewing the market as consumers or business partners alone. This progressive understanding of the BoP will encourage close, long-term interaction and mutualistic relationships, and foster shared commitment through embeddedness, as well as increase market penetration through creative channels and inclusive networks. From the findings above, a functional framework was developed for MNCs exploring the BoP space in Africa. The framework builds upon and advances the BoP 2.0 protocol developed by Stuart Hart, and will enable MNCs to anticipate challenges and risks associated with BoP markets in Africa. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

[pt] Apesar do recente aumento do número de pesquisas sobre a população de baixa renda no Brasil na área de Administração e de Marketing, pouco se estudou, ainda, sobre os padrões de consumo desse segmento na Região Nordeste. Considerando que, segundo dados do IBGE, 62,1 por cento dos trabadores nordestinos vivem de rendimentos de um salário mínimo, contra 35,9 por cento no Brasil, a presente dissertação pretende contribuir para reduzir essa relevante lacuna de pesquisa. Portanto, o objetivo desta dissertação foi identificar padrões de consumo de famílias de baixa renda da região metropolitana de Recife, a partir da composição de seu orçamento, nos anos de 2002/2003 e 2008/2009, e analisar mudanças encontradas nesse período. Com base nos dados fornecidos pela Pesquisa de Orçamentos Familiares (POF/IBGE) e utilizando técnica de análise de grupamentos (cluster), foram identificados quatro perfis de consumo nos dois períodos estudados, o que parece confirmar a heterogeneidade do segmento de baixa renda. Apesar de o período estudado ser marcado pelo aumento real do salário mínimo e da oferta de crédito, pela implementação de programas sociais do Governo Federal e pelo crescimento do investimento privado na região, verificou-se que os perfis de consumo não apresentaram grandes mudanças no intervalo de tempo em questão. Por outro lado, surgiram evidências de melhora do padrão geral de consumo das famílias de baixa renda e de sua condição de vida, o que aponta para perspectivas positivas para o padrão de consumo da população de baixa renda de Recife. / [en] Despite the recent increase in research on low-income population in Brazil in the field of Management and Marketing, little has been studied also on the consumption patterns of this segment in the Northeast. Whereas, according to IBGE, 62.1 per cent of workers receive a minimum wage, against 35.9 per cent in Brazil, this paper aims to contribute to reduce this significant research gap. Therefore, the aim of this thesis was to identify patterns of low-income families in the metropolitan area of Recife, from the composition of its budget in the years 2002/2003 and 2008/2009, and analyze changes found in this period. Based on data provided by the Household Budget Survey (POF /IBGE) and using technical analysis of clusters, we identified four profiles of consumption in both periods studied, which seems to confirm the heterogeneity of low-income segment. Although the study period is marked by a real increase in the minimum wage and the supply of credit, for the implementation of social programs of the Federal Government and the growth of private investment in the region, it was found that consumption profiles showed no major changes in the interval of time in question. On the other hand, there was evidence of improvement in general pattern of consumption of low-income families and their quality of life, which points to a positive outlook for the consumption pattern of low-income population of Recife.

“Over the past ten years, ITCs have become an important element in sustaining economic growth and poverty reduction through increasing efficiencies, enabling the delivery of social services, or creating new sources of income and employment” (Fourati, 2009, p. 37) . m-banking is one such technological development that has a potential to increase economic participation by low-income consumers. This research examines the factors influencing the adoption of mobile banking by low-income consumers in South Africa, with a special focus on the banking needs of the poor. The research framework was adapted from Tan and Teo (2000) and assessed the impact of these nine variables on the intention to adopt m-banking: relative advantage, compatibility with values, compatibility with banking needs, compatibility with cell phone use experience, complexity, “trialibility”, risk, self-efficacy and support. Data for this study was collected through a physical hardcopy survey in Soweto, in Gauteng.The research found that low-income consumers will consider adopting m-banking as long as it is offers them an improved way over the current mechanisms of managing their money, it is compatible with their financial services needs and they consider themselves as having the necessary skills to use it. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This study describes the factors that drive competitiveness between local firms and multinational enterprises (MNE) in a retail consumer market of an emerging country. It also seeks to identify the approaches and strategies the competitors consider and adopt to maintain the advantage in the consumer market.The objective of this study is to identify the factors local firms and MNE’s will consider when competing with each other. The study also wants to identify the preferred mode of entry of MNE’s.The study will be a quantitative study where relationships between competitors and their performance in the market are measured.The results revealed that local firms do have a competitive advantage over MNE’s in the retail consumer market due to the local firm’s knowledge of the market, rather than the technology and skills. It’s also clear that MNE have a preferred mode of entry and they chose to compete in the industries where they are stronger than the local firms. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted