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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/6783 |
| Date | 03 1900 |
| Creators | Ver Loren van Themaat, Tanye |
| Contributors | Schutte, C. S. L., University of Stellenbosch. Faculty of Engineering. Dept. of Industrial Engineering. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 170 p. : ill. |
| Rights | University of Stellenbosch |
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