Dissertations / Theses on the topic 'Bottom of the Pyramid (BOP)'

Investment in low income markets is increasing so too is a sense of controversy regarding poor markets. With BOP investment becoming many a firms’ strategy towards achieving growth, it is not clear to what extent managers’ attitudes to poor customers differ towards their attitudes towards middle-class customers. It is, however, well described that attitudes to poor people in a social context is negative and in some cases less favourable. It is postulated that business' mindset may be a barrier towards engaging with BOP markets despite the incentives and benefits that literature puts forward for marketing to the poor. Whether this attitude is negative, neutral, less favourable or similar is not well understood. The findings of this research project, can with a high level of confidence, report that the attitudes of a sample of managers do display a less favourable attitude towards a poor customer than is the case with a similar sample that is exposed to a wealthier customer.
Dissertation (MBA)--University of Pretoria, 2012.
Gordon Institute of Business Science (GIBS)
unrestricted

The research project investigated the trade-off between profit and social welfare objectives and whether metrics existed to measure the social welfare objectives set and the impact made. The study was conducted with leading brands within their respective categories and that are currently active in the South African BoP consumer market. The BoP market is widely recognised as an opportunity for business in developing markets to gain penetration of their brands and grow profits. How much of this ambition is married with social welfare objectives that aim to give back rather than just take out of the communities that they operate in? The challenge has been on what social impact to target and how to measure this. The research project was done using a quantitative research method, sampling brands that are within the top three sellers of their respective categories for LSM 1-4 consumers as measured by AMPS. This was supported by a thorough literature review to highlight the gaps that exist in the current way of interacting with BoP markets. The main finding is that profit is still the primary objective for most brands operating within this space and goals and associated social welfare metrics are still a distant third to marketing and business metrics measured within a business. The study ends with some recommendations for brand and business leaders to consider as they continue their incursions into BoP markets.
Dissertation (MBA)--University of Pretoria, 2014.
lmgibs2015
Gordon Institute of Business Science (GIBS)
Unrestricted

A majority of the world’s population can be classified as Bottom of the Pyramid (BoP), which means that they earn less than USD 3,000 per year. In addition, it is estimated that 12 % of the worlds BoP population live in Africa. Due to the vast economic growth in Africa - which will boost the African consumers income level -we have decided to write a dissertation that regards the African BoP consumers.The purpose of this dissertation is to investigate iffive BoP market barriers exist in the African countries Tanzania and Kenya. In order to answer the research question, we conducted interviews with two different companies established in the Tanzanian respectively Kenyan BoP market. It was possible to answer the research question through the primary data collected during these interviews.Our main findings from the empirical analysis indicated that four out of five market barriers in the Tanzanian and Kenyan BoP markets are accepted, and that both of the companies had to adapt to the different barriers. In addition, Company A and Company B also find solutions to these accepted market barriers in their respective BoP markets.This dissertation will be of value since Africa’s economy is steadily growing, which will attract more companies in the near future. Furthermore, research in how toovercome market barriers in order to establish successful business in low-income markets will also be valuable.

Business leaders often leave more than half of the world's population the bottom of the pyramid (BOP), a $5-trillion market of potential consumers untapped for products and services on account of failing to see BOP markets as profitable for business, yet business leaders who have managed inclusive BOP marketing in Nigeria have experienced profit margins as high as 120%. The purpose of this multiple case study was to explore strategies of business leaders who market to BOP consumers in Nigeria and maintain a profit. The study population consisted of 3 business leaders in the Dallas and Fort Worth metropolitan area who marketed to BOP consumers in Nigeria and maintained a profit. The conceptual framework that grounded the study was BOP marketing theory. Data were collected through semistructured in-depth interviews and company documents, with member checking implemented to strengthen creditability and trustworthiness. Based on the methodological triangulation of the data sources collected, 3 emergent themes were identified following 5 stages of data analysis. The themes were (a) maintain low profit margins in marketing essential items to the BOP in Nigeria, (b) maintain high profit margins in marketing to the non-BOP in Nigeria, and (c) market scaled-down products to the BOP in Nigeria. The findings from this study may contribute to social change by providing insights and strategies for business leaders seeking to prepare for and sustain profitability. The data from this study may contribute to higher profit margins for business leaders as well as job placement and entrepreneurship opportunities for the communities of Nigeria.

Prahalad has started a debate in the last decade regarding the opportunities of doing business towards the low-income consumers of emerging markets, which he called Bottom of the Pyramid (BOP) markets. The purpose of this study is to investigate how companies adapt their marketing mix strategies in order to target this type of market. The research is developed as case studies within the Brazilian telecom market in order to offer a new BOP setting as previous research has been focusing on Asia and Africa. Semi-structured face-to-face interviews are conducted with managers of the prepaid segment of three telecom companies. The study shows that price strategies are most important to adapt towards affordability in order to target BOP markets because of consumers’ limited budget. While adaptation in product and place are also seen, they are not as substantial as in price. The strategy that was not adapted was promotion as traditional channels are most common within the Brazilian BOP market. Moreover, companies with a strategy that traditionally have been upper-segment-centric do have to make larger and more innovative adaptations in order to market this segment.

The original study on which this study was based on was conducted by Jacob Goldenberg, Sangman Han, Donald R.Lehmann, and Jae Weon Hong and published in 2009. In a slight contrast to Goldenberg et al (2009), this study was conducted among a bottom of the pyramid (BOP) network in South Africa using one non discretionary product whilst the original study was conducted on multiple high tech products in Korea This study explores the role of hubs (people with an outstanding number of social ties) in diffusion and adoption of products. The study was conducted using data on a large network and its adoption of a product (electricity) to identify two types of hubs – innovative and follower hubs and their role in influencing adoption ala Goldenberg et al (2009). Even though hubs are not necessarily opinion leaders nor are they necessarily innovators (as described by Rogers, (1962)) they tend to adopt earlier in the diffusion process. Innovator hubs have a greater impact on speed of adoption whilst Follower hubs have greater impact on the size of the market or total number of adoptions. Interestingly and crucially this early adoption behaviour of hubs can be a useful predictor of future product success. Among BOP network nodes, relationships and trust are important in determining the amount or degree of influence one can exert on a fellow network member. Homogeneity increases trust which in turn impacts the role of a hub as a force of influence. The centrality of hubs to networks is also a factor behind their role as information to the rest of the network passes through them, to a degree giving them control over the dissemination of information. Copyright
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

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.

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.

The bottom of pyramid (BoP) concept holds that multinational companies (MNCs) can profitably serve the needs of the poor and have the opportunity to invest in the BoP market to‘do good and do well’ simultaneously. This thesis contributes to BoP concept by challenging the notion that- MNCs and big companies are the initiators of BoP business models. Recent scholars cited NGOs, SMEs, and governments as initiators, without recognising the visible activities of microbusinesses in the developing economies such as Ghana. This project aims to understand the origins of BoP business models, examine both MNCs’ co-optation and offering more of MNCs and local microbusinesses’ activities in the BoP market of Ghana. It examines the how MNCs got interest to engage the poor microbusinesses in the BoP market. The research employed case study approach and explores how MNCs interact with the local microbusinesses in the BoP market, using so-called Gioia method for data analysis. The main result of the empirical research demonstrated the source of innovation in the BoP market as the microbusinesses and not MNCs and large companies. MNCs just identify gaps in the BoP market and then develop cost-effective solutions that often help to serve the market. The research examined a type of BoP strategy (co-optation) that was not wholly discussed in the BoP literature. BoP as a concept has become performative in Ghana as Pralahad’s proposition influenced MNCs’ managers to show interest in the BoP market.

With the convergence of banking services and mobile technologies, users are able to conduct banking services at any place and at any time through mobile banking (Gu, Lee&Suh, 2009). This research examines the factors influencing the adoption of mobile banking by the Bottom of the Pyramid (BOP) in South Africa, with a special focus on trust, perceived cost and perceived risk including the facets of perceived risks: performance risk, security/privacy risk, time risk, social risk and financial risk. The research model includes the original variables of extended technology acceptance model (TAM2) (Venkatesh&Davis, 2000). Data from this study was collected through a physical hardcopy survey in townships around Gauteng. The research has found that customers in the BOP will consider adopting mobile banking as long as it is perceived to be useful and perceived to be easy to use. But the most critical factor for the customer is cost; the service should be affordable. Furthermore, the mobile banking service providers, both the banks and mobile network providers, should be trusted. Trust was found to be significantly negatively correlated to perceived risk. Thus, trust plays a role in risk mitigation and in enhancing customer loyalty. Copyright
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

The development of new technologies within healthcare open up for important and valuable opportunities for businesses as well as for individuals. Mobile health is one of the most important digital innovation, since patients get the opportunities to self-manage diseases and to receive healthcare services from specialists wherever and whenever. It has already been established in some developed countries, where the technology has, for instance, improved health research among populations and reduced healthcare costs. Currently, it is under investigation if there are also implementation possibilities in developing countries. They are defined as countries with poor infrastructure and decent economic activity, meaning a high number of people live with low income and they tend to have less access to health services than the ones in developed countries. The Bottom of the Pyramid (BOP) refers to the poorest of the economic human pyramid, where almost all of them live in developing countries. In order to enter a BOP market, it is beneficial for businesses to use the 4A:s (awareness, access, affordability, and availability) as a framework. The report aims to investigate if MedTech companies from developed countries can improve access, awareness, availability, and affordability to reliable healthcare in developing countries. It is referring to the BOP due to the focus on an innovation’s (i.e., MedTech app) growth opportunities in developing countries. The report is considered as an exploratory research, undertaking an inductive approach, since it exists limited written resources about the subject. The information has been gathered through primaryand secondary sources. The report’s findings raise the low digital awareness as a threat that could harm the development of new digital innovations in developing countries. By taking use of local collaborations and partnerships, it will develop understandings of the populations’ needs and behaviors, which is a benefit to be able to reach the users’ attention. The telecommunication industries’ growth and the increase of mobile users proves the populations are eager to embrace new digital innovations, meaning the initiative might be right in time. Additionally, the findings concern the limited access to healthcare and currently, the local care is of low quality. The doctors and nurses have limited knowledge and the hospitals are not keeping up with technology, which leads to that the citizens are seeking healthcare outside their own country. However, it could be perceived as a benefit when implementing a new MedTech service, since it does not exist any advanced systems that have to be changed or shut down. Moreover, to ensure the populations will be able to use digital healthcare services, it is important to keep the service affordable. By being supported with correct treatments, and recommendations, it would not be necessary to visit a doctor several times and, therefore, it could also decrease the patient's’ healthcare costs. Finally, digital healthcare services enable for patients to interact with foreign doctors wherever and whenever, which would increase the availability of healthcare services in developing countries.
Den ständiga utvecklingen av nya teknologier inom sjukvården öppnar upp för värdefulla möjligheter för företag samt individer. Mobil sjukvård är en av de viktigaste digitala innovationerna då det ger patienter möjlighet att själva hantera sjukdomar och har tillgång till specialistvård närhelst och varhelst. Detta har redan etablerats i ett antal utvecklade länder, där teknologin dels har förbättrat forskningen inom hälsa och dels minskat på sjukvårdskostnader. För tillfället undersöks även möjligheten för implementation av digitala sjukvårdstjänster i utvecklingsländer. De definieras som länder med outvecklad infrastruktur och svag ekonomisk tillväxt, vilket betyder att en stor del av befolkningen lever med låg inkomst och det finns inte samma tillgång till sjukvård som i utvecklade länder. The Bottom of the Pyramid (BOP) hänvisar till de fattigaste i den ekonomiska pyramiden där majoriteten av dem lever i utvecklingsländer. För att ta sig in i en BOP marknad, är det rekommenderat för företag att använda sig av ramverket “the 4As” (awareness, access, affordability, and availability). Syftet med rapporten är att undersöka om MedTech företag i utvecklade länder kan förbättra “the 4As” inflytande på tillförlitlig sjukvård i utvecklingsländer. Den hänvisar till BOP på grund av att fokus är på innovationens (dvs. MedTech applikation) tillväxtmöjligheter i utvecklingsländer. Rapporten betraktas som en utforskande studie och åtar en induktiv strategi med tanke på att det finns begränsat med information om ämnet. Underlaget för rapporten har samlats in via primära - och sekundära källor. Rapportens resultat visar på att den låga digitala medvetenheten skulle kunna begränsa utvecklingen av nya digitala innovationer i utvecklingsländer. Genom att etablera lokala partnerskap och samarbeten, kan en förståelse för befolkningens behov samt beteenden utvecklas, vilket är en enorm fördel för att få deras uppmärksamhet. Dessutom växer telekommunikationsindustrin och mobilanvändandet bland befolkningen ökar, vilket visar på att en digital nyfikenhet finns. Detta innebär i sin tur att det skulle kunna var helt rätt i tid för en etablering av digitala sjukvårdstjänster. Utöver det visar undersökningar på att tillgången till sjukvård för tillfället är begränsad och den lokala vården är av låg kvalité. Läkare och annan sjukvårdspersonal saknar ofta fullständig utbildning, vilket leder till att befolkningen söker sjukvård i andra länder. Avsaknaden av teknologi kan däremot uppfattas som en fördel vid en eventuell implementation av en ny MedTech-tjänst då det inte finns några avancerade system som måste ändras eller stängas ner. För att säkerställa att befolkningen kommer kunna använda sig av digitala sjukvårdstjänster är det viktigt att tjänsten uppfyller befolkningens ekonomiska möjligheter och är prisvärd. Genom att få tillgång till rätt behandling och rekommendationer direkt, behövs inte lika många besök hos läkaren och sjukvårdskostnader kan minska. Slutligen möjliggör digitala sjukvårdstjänster för globala interaktioner med läkare och specialister, vilket skulle kunna öka tillgången och tillgängligheten till sjukvård i utvecklingsländer.

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

Many large multinational energy company leaders lack strategies to successfully enter and thrive in bottom of the pyramid (BOP) markets. The purpose of this single case study was to explore strategies using a purposeful selection of 7 senior managers from a U. S. based global multinational energy leader with experience in BOP markets in the Republic of Cameroon. The BOP concept served as the conceptual framework for the study. Data were collected through semistructured interviews with senior managers, relevant websites, and government publications. Several themes emerged that were narrowed through categorical aggregation to identify strategies. Major themes included BOP readiness for social entrepreneurship, field knowledge to facilitate partnerships, and customer service. Findings suggest multinational energy company leaders seeking BOP opportunities should create internal corporate structures dedicated to the BOP markets. Leaders should know how businesses operate and thrive in the BOP, especially when working with BOP governments and a poorly informed population. Equally important is product choice, quality, and reliability for the BOP market. Customer service and satisfaction metrics are necessary to support brands. Participants highlighted the need for positive social change to improve lives, which could occur through capacity building, entrepreneurship, job creation, enhanced governance, increased wealth, and improved quality of life for local people.

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We propose a theoretical model that we call Social Reengineering where the four actors government, civil society, academia and companies operate in an interconnected way with actions to nudge the bottom of the pyramid to the top. We consider the concepts of Corporate Social Responsibility, Sustainability and Strategy aimed at developing countries under a new look at the BOP: as a productive market. The model depicts the process by which the four actors acting in a virtuous cycle with opportunities for the bottom of the pyramid brings mutual benefits, and suggests as effect poverty reduction. We examine the implications of this model for future research in the process of poverty reduction.
Esta pesquisa propõe um modelo teórico chamado de Reengenharia Social onde os quatro atores governo, sociedade civil, academia e empresas atuam de forma interconectada com o objetivo de promover o inferior da pirâmide para o topo. Considerou-se os conceitos de Responsabilidade Social Corporativa, Sustentabilidade e Estratégia voltados para os países em desenvolvimento sob um novo olhar para o BOP: como mercado produtivo. O modelo retrata o processo através do qual os quatro atores atuam num ciclo virtuoso com oportunidades para o inferior da pirâmide com benefícios mútuos, sugerindo como consequência a redução da pobreza. As implicações deste modelo são examinadas para futuras pesquisas no processo de redução da pobreza.

Ce travail doctoral met en lumière un défi mondial peu étudié dans la littérature en sciences de gestion : l'accessibilité des services de santé primaires aux populations à faible revenu Pourtant, la gestion difficile de l’accessibilité dans les stratégies Bottom of the Pyramid et les spécificités des services de santé complexifient la problématique pour les organisations.Cette recherche à visée prescriptive présente des stratégies que les organismes sans but lucratif et à but lucratif peuvent mettre en oeuvre pour créer des business models permettant de délivrer des services de santé primaires aux plus démunis tout en améliorant le bien-être de ces mêmes populations.Pour ce faire, nous avons mené une recherche qualitative basée sur une étude de cas multiples de quatre organisations basées au Brésil et en Afrique du Sud. Elles ont toutes le même objectif de délivrer des services de santé primaires aux plus démunis, mais développent des business model différents pour y parvenir. Cette divergence présente l’intérêt de créer un enrichissement mutuel des pratiques utile à la conception de notre produit de recherche : un business model Bottom of the Pyramid dédié à la prestation de services de santé primaires.La confrontation de notre étude empirique à notre étude conceptuelle souligne la nécessité pour les organisations de développer des interactions régulières avec les acteurs locaux par lesquelles elles pourront améliorer leur encastrement local. Encastrées, les organisations peuvent en effet s'appuyer sur leur écosystème local pour favoriser l'accessibilité des services de santé aux populations à faible revenu tout en créant de la valeur sociale et économique pour l'écosystème entier. Nous suggérons alors des éléments clés que les organisations peuvent intégrer dans leur business model afin de fournir des services de santé inclusifs aux populations à faible revenu
This doctoral thesis highlights a key global challenge that has received little attention in the management science literature: the accessibility of primary health care services for low-income populations.The challenge of accessibility seen in the Bottom of the Pyramid strategies and the professional characteristics of health services complicate the issue for organisations. With a recommendatory purpose, this research aims to introduce strategies that non-profit and forprofit organisations could implement to create business models that address these challenges and improve low-income populations’ well-being.To achieve this, we conducted a qualitative research based on a multiple case study of four organisations based in Brazil and South Africa. They all share the same objective of delivering primary health services to the poorest population centres, but they have each developed a different business model to achieve this. This divergence has the advantage of creating a mutualenrichment of practices useful in the design of our research product: a BoP business model dedicated to the delivery of primary health care services.The comparison of our empirical study with our conceptual study highlights the need for organisations to develop strong and regular interactions with local actors. It aims to improve the organisation’s acceptance and local embeddedness through inclusive practices. Once rooted in the community, the organisation can rely on its local ecosystem, to promote access to healthservices for low-income populations while creating social and economic value for the entire ecosystem. Based on our results, we suggest key elements that organisations could integrate into their business model in order to provide inclusive health care services to low-income populations

“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 bachelor thesis evaluates how high-engagement investors contribute to the development and growth of for-profit social enterprises by providing both funding and non-financial advisory services focused on organisational capacity-building. Case studies on three social enterprises describe the structure of funding deals, what considerations affected these due to the high social character of the ventures, and inquire into the relationship between social enterprise and their investors to evaluate how the investors provide value for their investees beyond capital. The investor types involved include commercial venture capital funds, angel investors, accelerator programs and venture philanthropy funds; a sort of social impact investment fund which combines the high- engagement mentoring of venture capital funds with lower expectations on financial returns in exchange for higher demands on social impact. The findings indicate that high-engagement investors in general provide a wide range of services to the social enterprises studied, where strategic advisory services and networks introductions are identified as key enablers for development. Aligning philosophies on the combination of business and social impact is also identified as critical for a constructive relationship between investor and investee. The perceived value of venture philanthropy funding diverges between the cases; while filling an empty space in the social enterprise capital market, some findings question their capabilities and investment model. Apart from the initial research questions on how high-engagement investors add value to social enterprises, the study raises further questions on social enterprise funding in general and the issues that obstructs these organisations from introducing innovation and growth to underdeveloped markets.

There is a need for cleaner technology initiatives into the Bottom of the Pyramid (BoP) market to combat the effects of climate change. The difficulty of these initiatives lies in their business model innovation process, as those organisations struggle in finding adequate strategies to establish their business in the BoP market. The BoP market is characterised as highly uncertain, which makes the operation of businesses challenging. Hereby the thesis aims at answering the question on how organisational learning occurs in business model innovation in the BoP market. Through a case study approach, the thesis intends to understand the requirements to establish a functioning business model by analysing organisational learning under business model innovation within the BoP market. This has been realised through a three week field study in Northern Mozambique, observing the market introduction of a cleantech company operating in this context. Hereby the business model innovation process and the environment of operation was analysed. This research contributes to the current discussion of business model innovation in BoP markets by detecting organisational learning as a useful mechanism and adding relevant insights on how organisational learning occurs in this specific context. Therefore the study opens the discussion on organisational learning in business model innovation in the context of the BoP market by asking for further studies on the topic.

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.
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

Thesis (MSc)--Stellenbosch University, 2012.
ENGLISH ABSTRACT: This thesis investigate the di erent available GSM bearer channels that can be used to launch a cellphone banking application. Speci c attention is given to launch such a cellphone banking application to the so called \bottom of the pyramid". In South Africa, there are an estimate 11 to 13 million people with no bank accounts. The cellphone create an ideal opportunity to be used as a tool to reach this untapped market segment that today mainly uses cash to pay for day to day living expenses. The thesis provide more information on the cellphone banking arena in South Africa as well as certain projects in other parts of the world. The thesis also highlight new devel- opments on cellphone technology that include Android and IPhone delivery channels. Focus is placed on how the cellphone banking presentation layer must be delivered through the USSD GSM bearer channel. USSD is at the current moment the ultimate channel to consider due to its extensive reach and ability to work on any GSM cellphone handset. In conclusion, although cellphone banking can be used by any person, the bene t to bring nancial services to the bottom end of the pyramid must be considered to achieve nancial inclusion. The cellphone due to its reach is the ideal medium to access this lower end market.
AFRIKAANSE OPSOMMING: Hierdie tesis ondersoek beskikbare GSM selfoon kanale wat gebruik kan word om 'n selfoon bankdienste toepassing te initieer. Spesi eke aandag word gegee om so 'n selfoon bankdienste toepassing uit te rol na die sogenaamde onderste gedeelte van die bevolkings piramiede. Die tesis verskaf meer informasie oor die selfoon bankdienste arena in Suid Africa maar dit brei ook ooit oor sekere soortgelyke projekte in ander dele van die wereld. Die tesis lig ook nuwe ontwikkelings uit in selfoon tegnologie wat Android en IPhone mediums insluit. Fokus word geplaas op die selfoon bankdienste vertoning deur die USSD GSM kanaal. USSD is huidiglik die beste kanaal om te oorweeg as gevolg van die wydverspreide beskik- baarheid omdat die tegnologie op enige selfoon handstuk werk. Die uiteindelike gevolgtrekking uit die werkstuk is dat selfoon bankdienste deur enige persoon gebruik kan word, maar selfoon bankdienste is 'n goeie idee om te oorweeg om mense in te sluit uit die onderste gedeelte van die bevolkings piramiede. Die selfoon kan dus as 'n ideale medium gebruik word om hierdie mense te betrek by nansiele dienste.

The purpose of the research study was to build a deeper understanding of negative brand experiences for consumers at the Bottom of the pyramid segment. The research took an approach of looking at a negative brand experience from end to end, by focusing on elements such as brand contacts, triggers and customer response across different experience dimensions. The literature asserts that for companies to succeed at the Bottom of the Pyramid they need to forego existing assumptions, companies must realise that low income consumers are brand conscious in order to build successful brands. Building successful brands at this market involves offering more than just a functional offering but creating an emotional bond through positive experiences. Such experiences are created each time one is in contact with one of the brand touch-points. The qualitative study showed that consumers value being treated with respect in addition to the provision of a product or service. It also shows that negative brand experiences can happen at various points for both products and services irrespective of whether a product is regarded as hedonic or utilitarian. The nature of negative word of mouth within this segment needs to be explored further as the study showed that there are other factors that influence one to spread negative word of mouth. The research study also shows that consumers are sensitive to brands that demonstrate not to care or those that break trust as such experiences lead to strong negative emotions.
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

Thesis (Ph.D.)--University of Western Sydney, 2009.
A thesis presented to the University of Western Sydney, College of Business, School of Marketing, in fulfilment of the requirements for the degree of Doctor of Philosophy. Includes bibliographies.

Thesis (S.B.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 55).
Slums are expanding in Latin America, Asia, and Africa, and as a result, the lack of safe, reliable electricity access in these regions is expanding. Addressing this issue will require a comprehensive strategy that caters to many different design scenarios. Slum electrification is a complex topic that needs to be closely examined in light of past projects in order to design effective models for future projects. In this thesis, slum electrification is characterized using case studies, case study variations of key characteristics are compared, and new models are proposed for scenarios unique to those found in the case studies. The characteristics are divided into two categories: those of slums and those of slum electrification projects. From analysis of key characteristics, one can see the trend of project actors choosing ideal slum environments and traditional project models for slum electrification projects. Alternative technical and organizational models, such as electric co-operatives and distributed generation, are proposed as potential solutions for less ideal, i.e. less permanent and planned, slum environments. Further development of these potential solutions is necessary in the future in order to make significant gains in the sector of slum electrification.
/ by Cecilia Scott.
S.B.

”Base of the Pyramid” (BOP) beskriver de fyra miljarder människor som lever i extrem fattigdom. Även om de är fattiga har de tillsammans stark konsumentkraft, vilket gör BOP till en marknad som inte ska förbises. Företaget Emerging Cooking Solutions (ECS) tillverkar pellets av överbliven biomassa i Zambia som kan användas som bränsle i matlagningsspisar de säljer. Fallstudien på ECS avser att undersöka hur ett innovationsnätverk har möjlighet att påverka etablering av en innovation, i detta fall pellets, på en BOP-marknad. Från befintlig forskning kring BOP, innovationsprinciper samt de 4 A:na identifierades de fyra kategorierna: funktion, kostnad, distribution samt miljö som ett företag bör arbeta utifrån när de utvecklar och etablerar en produkt. Därefter analyseras kategorierna efter innovationsnätverkets nivåer. Studien visar att ifall en innovation är anpassad efter BOP-marknadens krav, samtidigt som den har tydligt koncept, är företaget mer benäget att attraherar rätt aktörer som kan påverka deras etablering. Ifall konceptet har andra värdefulla påföljder, såsom positiv miljöpåverkan, istället för bara ekonomiska kan företaget gynnas ytterligare av nätverket.

In the context of the developing world the marginalised and poor have gained new significance and are a focus for marketers owing to C.K. Prahalad’s (2005) seminal work on the Bottom of the Pyramid (BOP) market. To lessen and improve the lives of the poor, pro-poor innovations are necessary for this market. However, when pro-poor innovations are developed for the BOP market, it is important to understand that the BOP exhibits different characteristics from the middle and high income consumer market because of different constraints faced by BOP consumers in their day to day life. Pro-poor innovations must, therefore, be developed that are tailored for this market and its unique surroundings (e.g., economic constraints, unreliable electricity etc.), to overcome these constraints. There are examples in the BOP market, where very useful pro-poor innovations (e.g., pure drinking water) with clear social benefits were unsuccessful in this market. Therefore, it is important to understand the complex array of antecedents to pro-poor innovation adoption in the BOP context so that practitioners and policy makers can maximise their chances of success in this large and socially important market. To understand the antecedents of innovation adoption, a range of theoretical models were developed (e.g., Value based Adoption Model, Consumer Acceptance of Technology model) but these have typically been validated within western, developed contexts. However, there is little research, which has investigated pro-poor innovation adoption in the BOP context. This research seeks to understand consumers’ pro-poor innovation adoption in the BOP context through: 1) empirically comparing seven innovation adoption models, 2) conceptually and empirically formulating an integrated pro-poor innovation adoption model, and 3) validating the newly developed model for the BOP. This research investigated these three objectives by conducting two studies. Study 1 was carried out to empirically compare the validity of seven consumer based innovation adoption models in the BOP. Following the procedure of Venkatesh et al. (2003), the empirical results of this comparison were coupled with theory in the area to conceptualise and develop a new model of innovation adoption for the BOP, coined here as the Integrated Theory of Pro-poor Innovation Adoption (ITPIA). Later, Study 2 was conducted to validate the newly developed ITPIA model in the BOP market. Consequently, this research contributes significantly to our understanding of the antecedents to consumer innovation adoption in this market through integrating elements of seven well-established consumer based innovation adoption models. The ITPIA model explains innovation adoption better than these existing seven models, which were mainly developed to explain innovation adoption by wealthier consumers in western contexts. This thesis also contributes by taking account of consumer heterogeneity such as urban and rural BOP area and different age groups. Although it may be common to assume that the BOP market want cheap products to suit their needs, the ITPIA model developed here shows that successful pro-poor innovations should address more than the lack of money of the BOP segment. It appears from this research that BOP consumers are not just rationally motivated. This research contributes by showing that BOP consumers don’t just look for functional, utilitarian benefits but are more likely to adopt a new product if it provides some degree of affective and hedonic gratifications. Interestingly, whereas consumer innovation adoption related research (Venkatesh et al., 2012) in developed country contexts suggests that intention is the strongest predictor of usage behaviour, this research contributes by providing the fact that supporting environment, which reduces external and internal constraints related to adoption of pro-poor innovations, is the strongest determinant of intention and usage behaviour of BOP consumers. Therefore, this research provides valuable theoretical and practical guidance about key antecedents, which influence the consumer adoption of pro-poor innovations in the BOP context, and this is of relevance to academics and policy makers with an interest in these markets.

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Nas últimas décadas, a Base da Pirâmide tem sido cada vez mais debatida entre líderes ocidentais como a nova terra das oportunidades. Com o advento do neoliberalismo no campo do desenvolvimento na década de 1990, o papel da sociedade civil e, em particular, o de Organizações Não-Governamentais, passou a ser enfatizado como sendo central nas estratégias ocidentais no 'Sul' do mundo. Os atores do desenvolvimento, no entanto, muitas vezes abordaram essas questões utilizando perspectivas tradicionais, que estavam geralmente fora de contexto. A tese foca na controvérsia em torno do uso de técnicas de gestão em cenários que diferem daqueles nos quais estas ferramentas têm sido desenvolvidas. Em particular, ela procura compreender em que medida o gerencialismo - a ideologia da gestão - está a influenciando as atividades de uma Organização Não-Governamental brasileira, a Galpão Aplauso. O estudo, usando uma estrutura teórica, analisa o relacionamento entre a ONG e seus parceiros, sublinhando os resultados de conflitos ideológicos. No geral, descobriu-se como o encontro das perspectivas do Norte e do Sul originou alguns debates que levaram, em parte, à aceitação de ideias gerencialistas, tais como a replicabilidade e sistematização de processos, enquanto que em alguns casos, eles intensificaram a resistência da ONG sobre conceitos como sustentabilidade financeira e transformação em um negócio social.
In the last decades, the Base of the Pyramid has been increasingly debated within western leaders as the new land of opportunity. With the advent of neoliberalism in the field of development during the 1990s, the role of Civil Society and Non-Governmental Organizations in particular started to be emphasized as being central in western strategies in the 'South' of the world. Development actors however often approached these issues using traditional perspectives, which were usually out of context. The thesis focuses on the controversy surrounding the use of managerial techniques in backgrounds that differ from those in which these tools have been developed. In particular, it seeks to understand to what extent managerialism – the ideology of management – is influencing the activities of a Brazilian Non-Governmental Organization, Galpão Aplauso. The study, using a theoretical framework, analyzes the relationship between the NGO and its partners, underlining the results of ideological conflicts. Overall, it has been found how the encounter of Northern and Southern perspectives originated some debates that led in part to the acceptance of managerialistic ideas such as replicability and systematization of processes, while in some cases they escalated to resistance from the NGO towards concepts such as financial sustainability and transformation into a social business.

Yes
This paper uses insights from the natural resource-based view (NRBV) to examine the conditions under which proactive environmental strategy (PES) drive firm performance. Using data collected from 266 small and medium-sized enterprises (SMEs) operating in Ghana, the results suggest that the impact of PES on firm performance is more pronounced in firms that do not purse bottom of the pyramid (BOP) orientation but not significant for firms pursuing the BOP orientation. Besides, the findings show that the influence of PES on firm performance is amplified for firms adopting imitation orientation but not significant for non-imitation oriented firms. Implications and directions for future research are discussed.

In times of scarce resources, frugal innovation can be a driving engine for growth and market success, as it is a practical concept established in developing countries. Nonetheless, the available literature also emphasizes a potential importance for Western countries. Accordingly, our thesis and research add to the lack of literature that connects frugal innovation to developed countries and its specific underlying conditions. The review of available literature and further discussions led to the following research questions: 1. What is the current application status of frugal innovation in Germany? 2. What characteristics should frugal innovations have to serve the BoP in the context of the German market? A preliminary theoretical framework was created from the relevant literature streams stressing the fragmented nature of frugal innovation. As the concept and research addressing this issue are in a nascent stage, one unifying definition was not found. For the course of this thesis, the definition of frugal innovation was therefore chosen to be "thrifty, modest and affordable innovations, valuable for BoP customers”. One major derivation from the literature review is that frugal innovation can be of major importance in developed countries, not only for customers for getting access to certain products, but also for companies addressing untapped markets. The empirical investigation and explorative data collection was undertaken within the market context of Germany based on eight companies from different industry backgrounds. Therefore, interviews were held with representatives of companies that offer frugal products (thereafter also including services) according to the definition from above. Within the scope of the grounded theory analyzation techniques, the interviews supported our aim to gain rich and meaningful data to extend the substantive theory about the concept of frugal innovation. Our study results (based on our eight interviews) prove the existence of frugal products in the German market, while the term and the concept have previously been unknown. Even though frugal innovations were still to be confirmed, they were not labeled as such to connect them to the concept. The study also indicates the existence of a bottom of a pyramid in Germany, despite its original connection to emerging market population. Our findings resulted in a revised framework that connects relevant fragments to a logical comprehension of the concept of frugal innovation. Finally, characteristics for frugal products and requirements could be validated and improved to be economically successful in developed market contexts. The major contribution of our thesis is its general investigation of a rather unknown concept and its presence in other markets than originally laid down. The thorough literature review, the creation and revision of the framework and our study results will serve as a fruitful ground for further exploration of this innovation type.

As firms intend on entering low-income markets as a result of stagnation in developed economies, they face numerous organisational barriers within their firms and external that hinder entry and ensure continued success in these markets. In order to successfully serve these BoP consumers in emerging markets, new innovative business models are required; however there are entities that are currently serving the BoP successfully – these are Small and Medium Enterprises.The purpose of this study was to deepen our understanding of why small and medium sized businesses have been successful in low-income markets through an understanding of their business models and their competitive advantages over MNCs.The objective of this report, hence, was to explore the business models for firms that are currently serving the BoP successfully and what their competitive advantages are as compared to their MNC counterparts within the South African context. Using the grounded theory approach of building theory from data that offers a new perspective on the BoP for MNCs a framework resulted and was theorized from the data from interviews with owners of SMEs in the FMCG manufacturing domain. The BoP Blueprint is a framework that describes elements of business models of SMEs in the context of SME Fundamentals – basic business fundamentals and the Customer Core – focus on the customer. Eleven in-depth interviews were conducted with owners from 11 different companies to test the research questions that were derived from the literature.As a result of the grounded theory, no unique or innovative business models were discovered that made these SMEs successful contrary to the literature and the essence of the findings is that MNCs need to focus on fundamental business practises with the customer as the centre of their decisions when entering BoP markets.
Dissertation (MBA)--University of Pretoria, 2012.
Gordon Institute of Business Science (GIBS)
unrestricted

The bottom of the pyramid (BoP) market in Africa is a significant opportunity for multinational banks. To address this banks’ need to increase their understanding of their BoP context, develop new approaches to overcome BoP obstacles, and use technology to create new commercially viable business models. The purpose of this study was to investigate how banks use co-creation with stakeholders to operate in BoP markets in Africa. The research explored how banks provide services to companies and individuals that currently do not use banks services, and acquire understanding by working with companies, individuals and other market actors to generate services that creates an infrastructure for BoP markets to ‘work’. This study addresses the gap in the research on how banks co-create in BoP markets, providing understanding of how banks’ create approaches to customers and operating models to achieve sustainable growth in BoP markets. Empirically, the study examined specific bank projects to better understand how co-creation supports banks to delivers sustainable and scalable business models. The main findings from the empirical research demonstrated positive results, strong leadership and commercial management are critical to banks operating in BoP markets in Africa; concurring with arguments put forward by Casado Cañeque and Hart (2015) and extending London and Hart’s (2010) analysis into a banking context. Research confirmed post-financial-crisis corporate governance of banks and their boards’ ability to ensure they can demonstrate their banks are well managed, and management having a detailed understanding of the operations, has created trade-offs and restrictions on how banks operate in BoP markets. No common strategies emerged to create a new business model for banking in BoP markets in Africa. No immediate significant new direction emerged for banks to overcome their business models’ legacy of inflexibility to address the needs of BoP customers. Results revealed bank proposition development approach remains generally focused on developed, rather than developing, customer contexts and regulations. The majority of BoP customers in Africa remain excluded due to cost, distance, and a lack of suitable products, as variables such as access, cost and regulation made it challenging for banks to provide compelling bank-wide propositions. BoP customers in Africa are becoming easier to access, as banks, card networks, and mobile network operators use digital technology, like mobile phones, to access BoP customer markets at lower costs than traditional business models, allowing new approaches to proposition development, such as test and learn in the field. The findings demonstrated value in co-creation via partnerships, supporting Simanis (2012), who maintained that firms are likely to be successful in BoP markets if they use existing infrastructure and local partnerships to enter BoP markets, and that pioneering work on microfinance initiatives embracing new approaches to digital technology across banking markets has led banks to reconcile the need for new approaches to BoP markets.

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.

Present-day development theory and practice highlight the potential of micro-entrepreneurship for poverty reduction in least developed countries. Fostered by the seminal writings of microfinance founder Muhammad Yunus and the bottom-of-the-pyramid propagator Krishnarao Prahalad, the new approach is marked by a stress on participation and sustainability, and the new, market-based development models. With the growing popularity of the new approach there has been an increased demand for research on the efficacy and impact of innovations. What has scarcely been addressed, however, is the legitimacy of the new paradigm within its contexts of application. Since engagement and participation have been made the focal point of the new approach, my research investigates how the innovative, mostly market-based models have been received by the local populations on the ground. This doctoral dissertation is looking up-close at the rural populations of Burundi, describing and explaining their perceptions, behaviors and actions in response to the market-based development innovations: microfinance, rural entrepreneurship and community social enterprise. Do the concepts of entrepreneurship, community engagement and participation find a fertile ground among the poorest rural dwellers of sub-Saharan Africa? Can subsistence farmers be entrepreneurs? How to create social value in the context of extreme resource scarcity? It is investigating these and other questions that guided the subsequent stages of my work. I based my dissertation on extensive field research, conducted periodically over the period of four years in the remote areas of rural Burundi.In the first chapter, I question the applicability of entrepreneurship-based interventions to the socio-cultural context of rural Burundi. Basing my quantitative analysis on a unique cross-section dataset from Burundi of over 900 households, I look into the entrepreneurial livelihood strategies at the near-subsistence level: diversifying crops, processing food for sale, supplementary wage work and non-agricultural employment. I find that the farmers living closer to the subsistence level are indeed less likely to pursue innovative entrepreneurial opportunities, unable to break the poverty cycle and move beyond subsistence agriculture. The paper contributes to the ongoing debate on by analyzing its drivers and inhibitors in the context of a subsistence economy. It questions the idea of alleviating rural poverty through the external promotion of entrepreneurship as it constitutes ‘a denial of the poor’s capacity for agency to bring about social change by themselves on their own terms’.Drawing on these findings, the second chapter focusses on the role of local communities as shareholders of projects. The aim of this paper is to investigate the ways in which the agrarian communities in rural Burundi accommodate the model of a community social enterprise. The project understudy, implemented by the UNICEF Burundi Innovation Lab, builds upon the provision of green energy generators to the village child protection committees in the energy-deficient rural regions of the country. The electricity-producing machines are also a new income source for the groups, transforming them into economically viable community enterprises. Since the revenue earned is to directly support the village orphans’ fund, the communities in question engage in a true post-development venture: they gradually assume the role of the development-provisioning organizations.The third chapter of this work focusses on the complex interaction between the microfinance providers and the population of its clients and potential clients: the rural poor. It draws on the existing research on positive deviance among African communities and explores the social entrepreneurial potential of the rule-breaking practices of microfinance programs’ beneficiaries. Using the storyboard methodology, I examine the strategies employed by the poor in Burundi to bypass institutional rules. My results suggest that transgressive practices and nonconformity of development beneficiaries can indeed be seen as innovative, entrepreneurial initiatives to reform the microfinance system from within, postulating a more participatory mode of MFIs’ organizational governance. The three empirical chapters provide concrete examples illustrating the contested nature of the development process. In the last, theoretical, chapter, I examine how the different conceptualizations of social entrepreneurship have been shaped by the disparate socio-political realities in the North and in the South. I then analyze how the process of constructing academic representation has been influenced by the prevalent public discourses.Since doubling or tripling of the external development finance has not sufficed to bring about systemic change, the assumption that technology, managerial efficacy and the leveraging power of financial markets could be applied to solving the problem of persisting global poverty has a lot of appeal. At the same time, my findings point to the fact that if the ultimate objective of development is broadly defined value creation, the definition of what constitutes value should be negotiated among all the stakeholders. The dissertation makes an important contribution to the understanding of participation, entrepreneurship and community engagement in the context of development studies.I strongly believe that development organizations must have a quality understanding of the social and cultural characteristics of the need or problem they are targeting in order to make productive decisions about the application and scaling of interventions. I very much hope that my work can provide some guidance for their work on the ground.
Doctorat en Sciences économiques et de gestion
info:eu-repo/semantics/nonPublished

Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2007.
Includes bibliographical references.
This thesis deduces a set of best practices for sustainably scaling up lighting technologies in developing countries with a focus on Bottom-of-the-Pyramid (BOP) communities, whose annual incomes are US $3000 or less (in local purchasing power parity). The best practices are derived from a comparative analysis of two heuristic case studies profiling entrepreneurs based in southern India, who have successfully scaled up lighting technologies in BOP communities. Also discussed is the impact that quality lighting has on our health, safety, socio-economic status and the environment that surrounds us. Not surprisingly the demand for quality artificial lighting is high in these communities, where access is generally limited. SELCO-India, a registered company, sells photovoltaic-based home lighting systems; while THRIVE, a nonprofit organization, sells Light Emitting Diode (LED) lanterns to remote communities in India. Both organizations use alternative models to address the same issue. While the research presented here focuses on the lighting sector in India, it is also proven that the results are applicable in the context of entrepreneurship in BOP communities around the world.
by Pragnya Y. Alekal.
S.M.

This exploratory study investigated changes in the allocation of household expenditure between various product or service categories in a sample of South African low-income or 'bottom of the pyramid' (BoP) households. First, the mixed methods research quantified the monthly income and expenditure fluctuations in the sample of households over a period of four months. In addition, study identified and quantified expenditure category trade-offs in the target households. Finally, a qualitative inquiry explained the reasons for the fluctuations and the trade-offs identified in the first two components. The study was based on the existing BoP proposition and specifically focused on BoP consumer decision-making theory. Methodologically, the study was a monthly longitudinal panel over four months. The quantitative component employed a once-off baseline questionnaire to gather household data. The participating households then completed monthly self-complete financial diary questionnaires that recorded both income and expenditure. The qualitative component involved interviews with representatives from the participating households and provided details to explain the underlying causes for changes in monthly expenditure patterns. The study was conducted in four provinces with eighty BoP households participating in the research. The study found significant variation in both household income and expenditure between months. The variation and consequent trade-offs between expenditure categories was caused by calendar-related phenomena (such as the festive season), income shocks, unforeseen expenses and spreading the household budget over multiple months. In addition, large fluctuations in income resulted in a constantly shifting allocation of expenditure to categories that required the most attention at a particular point in time. Informal savings (stokvels) and micro-enterprise expenses also contributed to fluctuations in income and expenditure. This study provides unique insights that fill a vacuum in the current body of academic and industry knowledge for this segment of close to forty million BoP South Africans. No study of this nature has been published in either South African or international journals.

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 is a qualitative study which focuses on how Liberty Life Swaziland distributes microinsurance to the bottom of the pyramid within Swaziland. Using stratified purposive sampling, this study identified 5 managers within Liberty Life and 4 managers from brokerages and affinity partners who had a minimum of 3 years’ experience in distribution of microinsurance. Semi-structured and in-depth interviews were conducted by the researcher with these managers. Interviews were stopped when there was data saturation. To induce emerging themes from the data, open-coding and constant comparison technique was used. Findings in this study reveal that to distribute microinsurance to low income households, Liberty Life objectives are to; (1) provide relevant solutions in a cost effective manner, thus keeping premiums as affordable as possible, (2) provide simple products which are easy to understand by customers, (3) make services accessible, and (4) make doing business easy. In this regard, Liberty Life distribution strategy is to partner with bulk retailing entities that have a client base they already service and benefit from nationwide presence and infrastructure. Lastly, the perspectives of both internal and external stakeholders in microinsurance are discussed to evaluate the challenges and successes experienced in implementing the distribution strategy. This study is valuable to critically understand the current distribution strategy from the viewpoint of key intermediaries, but also pinpoint how efforts to achieve microinsurance distribution objectives can be enhanced. Lastly, the study recommends that; a selection criteria be set for distribution partners, partnership with mobile network operators, investment in continuous training of distribution partners and knowledge sharing between Liberty and intermediaries to cease the opportunity at the bottom of the pyramid.

Para atuar nos mercados da Base da Pirâmide - BOP (Bottom of Pyramid) estratégias customizadas são requeridas dadas as especificidades do consumidor alvo, em que não apenas a restrição à renda se configura, mas também, o acesso ao produto e as necessidades de especificações relacionadas ao seu uso e local. Assim, as organizações precisam atuar com produtos de baixos preços e crédito, devido à restrição de renda do consumidor, obrigatoriamente trabalhando com eficiência, baixos custos de produção, maiores volumes de produção e investimentos em canais de distribuição. As principais publicações não chegaram a um acordo sobre se a atuação na BOP é produtiva ou ilusória, em que se pesem os vários estudos de caso e os vários estudos específicos de estratégias para a BOP. Recentes estudos sobre eficiência indicaram não haver diferença entre elas no mercado, no entanto, importantes autores a veem, mesmo que com grandes vieses. Até mesmo a caracterização da BOP no Brasil foi colocada em discussão. Esta pesquisa utilizou abordagem quantitativa e qualitativa na análise dos dados feitas através de survey eletrônica e questionário, que foram trabalhados por meio de metodologia multicritério e utilizando como base conceitual a Teoria dos Grupos Estratégicos. Assim, o estudo apresenta quais diferenças existem entre as eficiências financeiras das indústrias que atuam ou não na BOP e apresenta um modelo de dimensões estratégicas que estão mais associadas à alta eficiência financeira dos Grupos Estratégicos (GEs) das indústrias de móveis, de confecções, de alimentos, de bebidas, de higiene que ofertam produtos para a BOP estendida, renomeada dessa maneira por incluir a classe C no estudo, diferentemente ao conceito inicial da BOP. Adjacentes a esse objetivo principal, esta tese avaliou a correlação de eficiências com as principais variáveis econômicas e identificou quais dimensões estratégicas estão associadas aos mercados BOP-e, Não-BOP e Misto, dos GEs. A expectativa é de que a pesquisa possa ser mais um dos poucos estudos significativos que inter-relacionam estratégia e eficiência financeira no país, portanto, busca avançar no campo teórico das estratégias relacionadas à BOP, bem como, apresentar dados empíricos sobre Grupos Estratégicos e BOP, contribuindo gerencialmente com a exposição das dimensões estratégicas e estrutura financeira dos GEs que apresentam melhor eficiência financeira dentro da BOP-e, de forma a serem ponderadas pelos executivos em suas tomadas de decisões.
To operate in the Bottom of the Pyramid (BOP) markets, customized strategies are required given the specificities of the target consumer, where not only the income restriction is configured, but also the access to the product and related specifications needs to its use and location. Thus, organizations need to work with products of low prices and credit due to consumer income restriction necessarily working efficiently, lower production costs, higher production volumes and investments in distribution channels. The main publications did not reach an agreement on whether the performance in the BOP is productive or illusory, considering the various case studies and the several specific studies of strategies for BOP. Recent studies on efficiency indicated that there is no difference between them in the market, however, important authors see it, even if with great bias. Even the characterization of BOP in Brazil was placed under discussion. This research used a quantitative and qualitative approach in the analysis of the data made through electronic survey and questionnaire, which were worked through a multicriteria methodology and using as conceptual basis the Theory of Strategic Groups. Thus, the study shows that differences exist between the financial efficiencies of industries that operate or not in the BOP and presents a model of strategic dimensions that are more associated with high financial efficiency of Strategic Groups (SGs) of the furniture industry, of the clothing industry, of the food industry, of the beverage industry and of the hygiene that offer products for the extended BOP, renamed in this way by including class C in the study, unlike the initial concept of BOP. Adjacent to this main objective, this thesis evaluated the correlation of efficiencies with the main economic variables and identified which strategic dimensions are associated with the BOP-e, Non-BOP and Mixed markets of the SGs. The expectation is that the research may be one of the few significant studies that interrelate strategy and financial efficiency in the country, therefore, it seeks to advance in the theoretical field of strategies related to the BOP, as well as to present empirical data on Strategic Groups and BOP , contributing managerially with the exposure of the strategic dimensions and financial structure of the GEs that present better financial efficiency within the BOP-e, in order to be considered by the executives in their decision-making.

The mobile telecommunications industry has revolutionised the global economy, enabling advancements, innovation and increasing information flow across almost all sectors of the economy. Mobile telecommunication has bridged the digital divide in many rural and informal communities, allowing people in this segment to access products, information, services and social interactions. The Bottom of the Pyramid (BoP) relates to the socio-economic group of people living on less than $2 per day. These consumers are characterised by distinct consumption patterns, purchasing patterns and price sensitive consumption. Mobile telecommunications made up of voice and data services form part of the consumption of BoP consumers. The objective of the research was to investigate the factors that influence the adoption of mobile data services at the BoP in South Africa. The study was approached from the BoP consumers perspective and followed a quantitative method, with a sample being drawn from the informal settlement of Diepsloot. The target sample was individual mobile phone users. A conceptual framework was developed from the constructs identified in the literature review, which consisted of Perceived Usefulness, Perceived Ease of Use, Subjective Norm, Availability, Affordability, Awareness and Acceptability. The framework was then tested in the informal township of Diepsloot. The study revealed that not all factors explored are significant predictors or influencers of mobile data services adoption at the BoP in South Africa. The study highlighted the factors of Perceived Ease of Use, Subjective Norm and Availability as being those that do not influence the adoption of mobile data services at the BoP in South Africa, while Perceived usefulness, Awareness, Affordability and Acceptability, were highlighted as influencers of mobile data services adoption at the BoP in South Africa.
Mini Dissertation (MBA)--University of Pretoria, 2015.
ms2016
Gordon Institute of Business Science (GIBS)
MBA
Unrestricted

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: The purpose of this research report is focused on stating a case for the strategic value to be gained from an alignment of company strategies with the needs of the bottom of the pyramid (BOP), as well as an analysis of the relationship and conditions of support between the donor and receipient of corporate social investment. The report will focus on the relationship of the business sector with the triple bottom line, more specifically the social development component - the relationship of the recipients with the business reaching out to them; and the contribution it makes to sustainability. Corporate social investment (CSI) is most often measured in non-economic terms. In continuation of establishing the link between CSI and sustainability, the report will: • Provide evidence of the strategic advantage a high emphasis on sustainability initiatives bring about for the business sector. • Address the direct relationship between the economic performance of a company and their corporate social investment achievements. • Highlight the close relation between social and environmental perfonnance of business and the link to continued business competitiveness and long-term sustainability. • Support a better understanding for the need for business and non-profits to form partnerships to add value to the long-term sustainability of communities through CSI. • Highlight the role NGOs and other socially concerned groups can play in engaging with the business sector (CSR Investors) as well as the people at the "Bottom of the Pyramid". • Develop a model for use by any partner on either end of CSI initiatives which will serve as a guideline for mainstreaming CSI. NGOs within the non-profit sector have a very specific role to play in the sustainability context. This statement also translates as to stating that the NGO should be the main partner in linking the business sector with the social development within the community. The role of NGOs, the non-profit sector in the community, is key to corporate companies opening the door to BOP markets. This view is supported by Prahalad and Hart (2005:32) stating that NGOs and other concerned social groupings are by far the lead experimenters in BOP markets. GRI indicators and guidelines playa dominant role in linking social development as component of the triple bottom line to sustainability. This is also confinmed by sustainability reports of a selection of businesses evaluated and compared. The model developed gives attention to the process of embedding CSR in the business profile, with factors influencing this process and activities acting as drivers. The change needed requires a certain quality of leadership, not only from the management of the business, but also from the govemance structure in place. Answering in these requirements will ensure the identification of strategiC issues and effective strategies to address them. The role of indigenous governance systems is highlighted to support the objective of reaching the BOP. The model provides guidance on the calculation of a return on CSR, the indicators of growth and success and the expected outcomes. The task of fitting a non profit organisation to a potential partner in the business sector continues to be a challenge, a strategiC move critical for the long-tenm sustainability of society. It cannot be dealt with in the enclosed boundaries of a research report and is a living activity that needs to be practiced. Innovation, skill, will-power and ethical leadership and govemance will continue to be instrumental for success. It is therefore critical that the buy-in comes from all levels of business, to allow for true sustainability of services and products. Eventually the true measure for success will be the extent to which the BOP benefits from the "exercise" economically and socially, the extent to which the businesses can add to their profit margin with incorporation of serving the BOP.
AFRIKAANSE OPSOMMING: Die doel van hierdie navorsingsverslag is om 'n besigheidsaak te staaf. Die fokus is op die verkryging van 'n strategiese waarde uit die ooreenstemming van besigheidstrategiee met die behoeftes van gemeenskappe aan die onderkant van die ekonomiese piramide (BOP). Die fokus is verder op die analise van die verhoudings en voorwaardes vir ondersteuning tussen die gewer en die ontvanger van korporatiewe sosiale beleggings (CSI). Die verslag sal fokus op die verhouding tussen die besigheidsektor en die "triple bottom line", meer spesifiek die sosiale onlwikkelingskomponent - die verhouding tussen die ontvangers en die besighede wat uitreik na hulle; en die bydrae wat dit maak tot volhoubaarheid. Korporatiewe sosiale belegging (CSI) word gewoonlik gemeet in nie-ekonomiese terme. Ter voortsetting van die vestiging van die skakeling tussen CSI en volhoubaarheid, hanteer die verslag ook die volgende: • Dit gee bewyse van die strategiese voordeel wat verkry sal word uit 'n sterk klem op volhoubaarheidinisiatiewe wat voortgebring word vir die besigheidsektor. • Dit spreek die direkte verhouding aan tussen die ekonomiese prestasie van 'n besigheid en hul prestasies op die terrein van CSI. • Dit plaas nadruk op die noue verhouding tussen die sosiale en omgewingsprestasies van die besigheid en die konneksie daarvan met die mededingendheid van die besigheid en langtermynvolhoubaarheid. • Dit ondersteun 'n beter begrip vir die behoeftes van besighede en niewinsgewende organisasies (NGO's) aan vennootskappe ten einde waarde toe te voeg tot langtermynvolhoubaarheid van gemeenskappe deur korporatiewe sosiale beleggings. • Dit beklemtoon die rol wat NGO's en ander sosiale bewustheidsgroepe kan speel wanneer hulle betrokke raak by die besigheidsektor (CSR beleggers), sowel as die mense aan die onderkant van die ekonomiese piramide. • Dit ontwikkel 'n model vir gebruik deur enige vennoot aan enige kant van CSI inisiatiewe wat sal dien as riglyn vir die insluit van CSI in die besigheidshoofstroom. • NGO's binne die kader van die nie-winsmakende sektor het 'n baie spesifieke rol te speel binne die konteks van volhoubaarheid. Hierdie standpuntinname kan ook beteken dat die NGO die hoofvennoot behoort te wees in die skakeling van die besigheidsektor met die sosiale ontwikkeling van die gemeenskap. Die rol van die NGO, die nie-winsgewende sektor in die gemeenskap, is die sleutel tot die ontsluiting van die ekonomiese markte vir gemeenskappe aan die onderkant van die ekonomiese piramide. Hierdie standpunt word ondersteun deur Prahalad en Hart (2005:32) wat dit stel dat nie-winsgewende organisasies en ander sosiale groeperinge die onteenseglike leiers is in eksperimentering binne die BOP markte. GRI (Global Reporting Initiative, ook genoem die GRI Volhoubaarheid Verslagdoening Riglyne) aanwysers en riglyne speel 'n dominante rol in die koppeling van sosiale ontwikkeling as onderdeel van die "triple bottom line" met volhoubaarheid. Dit word bevestig deur die volhoubaarheidsverslae van 'n aantal besighede wat geevalueer en vergelyk is. Die ontwikkelde model gee aandag aan die proses van vaslegging van CSR binne die besigheidsprofiel, saam met die faktore wat hierdie proses beinvloed en die aktiwiteite wat dien as drywers. Die verandering wat benodig word vereis 'n sekere kwaliteit van leierskap, nie alleen in die bestuur van die besigheid nie, maar ook vanuit die regerende strukture wat reeds bestaan. Die identifisering van strategiese sake en effektiewe strategiee verseker dat voldoen word aan bogenoemde vereistes. Die rol van inheemse regerende strukture word beklemtoon in die bereiking van BOP-markte as doelwit. Die model verskaf leiding in die berekening van 'n opbrengs op korporatiewe sosiale verantwoordelikheid (CSR), die aanwysers van groei en sukses en die verwagte resultate. Die taak om 'n nie-winsgewende organisasie in geskikte passing met 'n potensiele vennoot in die besigheidsektor te gee, bly steeds 'n uitdaging, 'n strategiese skuif wat belangrik is vir die langtermynvolhoubaarheid van die gemeenskap. Dit kan nie voldoende hanteer word binne die grense van 'n navorsingsverslag nie en bly 'n lewende aktiwiteit wat voortdurend beoefen moet word. Innovering, vaardigheid, motivering en etiese leierskap en regering sal voortgaan om instrumenteel te wees vir sukses. Dit is daarom uiters belangrik dat die betrokkenheid en inkoop moet kom van al die vlakke van besigheid ten einde die ware volhoubaarheid van dienste en produkte te verseker. Uiteindelik sal die werklike meting van sukses bepaal word volgens die omvang waartoe BOP-markte baat vind by die "oefening", ekonomies sowel as sosiaal - dit is die omvang van waardetoevoeging tot die winste van die besigheid met inbegrip van dienste aan gemeenskappe aan die onderpunt van die ekonomiese piramide.

O avanço das ações de desenvolvimento vem colocando desafios à gestão de recursos; as diferentes particularidades nos tipos de recursos disponíveis para uso pelas organizações (na área de administração de empresas), seja por localização geográfica, clima, relevo e/ou outras especificidades locais, como por exemplo, recursos naturais, fogem aos padrões impostos pelas abordagens teóricas estratégicas dominantes, atualmente, nas ciências sociais. No caso do megabioma Amazônico, devido à grandeza patrimonial e suas especificidades locais, há recursos naturais que são únicos e inimitáveis, seja de maneira individual seja pelo conjunto do megabioma, apesar do contexto de pobreza da região. Na medida em que se pressiona para o uso desses recursos, seja pelos indivíduos, seja pelas organizações, podem-se gerar diferentes tipos de conflitos, até porque o uso dos recursos naturais e os conflitos socioambientais são cenários de repercussões para a sociedade, devido às mudanças que promovem em termos ecológicos e das propostas de desenvolvimento social. Assim existem recursos naturais, principalmente, os renováveis disponíveis para uso, que exige novos conhecimentos teóricos e práticos, tanto para acadêmicos como para os gestores atuais. Nesse contexto, são necessárias as preocupações dos cidadãos, instituições e governos, necessitando, no entanto, de um conhecimento adequado à natureza, suas potencialidades e dimensões, no tocante ao uso no presente e garantia para as gerações futuras dos recursos necessários e sua sobrevivência com qualidade de vida, ou seja, a sustentabilidade nesse sentido vem ao encontro de um manejo ambientalmente correto (sustentável) socialmente justo e economicamente rentável, considerando como pilares do Desenvolvimento Sustentável as dimensões Sociais, ambiental e Econômica, dimensões que nortearam a presente pesquisa. Nesse quesito de conhecer como esse processo poderia ocorrer, na Amazônia, foi tirado proveito da teoria Path Dependence que possibilita organizar de forma metodológica e teórica a trajetória e os conhecimentos necessários para que se obtenha uma produção sustentável, com satisfação de mercado aliados a oportunidade de negócio para as comunidades locais. Sendo assim, nesse contexto que envolve recursos, preocupações com a sustentabilidade as inovações que orientaram a presente pesquisa são coladas com a realidade local, com intuito de atender tanto a sustentabilidade quanto resolver impasses que tem impedido progressos substanciais no cruzamento da pobreza, sustentabilidade e meio ambiente. As preocupações, relacionadas à redução da pobreza é um fato que tem sido motivo de preocupação, inclusive no megabioma amazônico, apesar desse ser considerado rico e potencialmente rentável; tem transcendido os limites individuais, empresariais e nacionais, passando a ser uma preocupação global. Nos anos 2000, se consolidou a ideia de que as empresas têm um papel importante na redução da pobreza e a partir disso surge a teoria Base da Pirâmide (BoP) visando possibilitar o consumo para os pobres (BoP 1.0); no entanto por mais que essa teoria tenha avançado possibilitando maior participação dos pobres os envolvendo como co-criadores (BoP 2.0) esta ainda continua os considerando como sujeito passivo ou meros consumidores/colaboradores, visto que a renda por agregação de valor aos produtos (co-criadores) fica com a empresa, ou seja, a teoria não tem sido aproveitada para a produção a partir dos recursos naturais, com vistas a geração de renda, a melhoria na qualidade de vida e organização sustentável, principalmente numa região como a Amazônica. Assim, considerando as oportunidades existentes no megabioma amazônico, tem-se o entendimento que as oportunidades da BoP, podem ir além do consumo (BoP 1.0) ou co-criação de valor (BoP 2.0) e, com foco nos produtores da BoP (produtores de PFNMs), de forma organizada, podem ser desenvolvidas alternativas de melhoria de qualidade de vida, baseado em recursos naturais renováveis sustentáveis, emergindo a questão principal da presente pesquisa: A exploração dos recursos naturais amazônicos, de forma sustentável, pelos produtores BoP, caracteriza-se como uma nova abordagem da BoP, indo além do que é preconizado pela BoP 1.0 e BoP 2.0? Para se chegar a isso, a presente pesquisa está sendo norteada pelos temas: Sustentabilidade e Desenvolvimento sustentável, Recursos Naturais; Visão Baseada em Recursos Internos (VBRI); Inovação e Inovação orientada para a sustentabilidade; Base da Pirâmide (BoP), e PFNMs (produtos florestais não madeiráveis), nesse caso são os produtos naturais renováveis amazônicos. O objetivo é o de propor e aplicar um framework de sustentabilidade da BoP, para organizações que atuem com recursos naturais renováveis, para os produtores (PFNMs) da BoP, do megabioma amazônico. A pesquisa é exploratória e descritiva, de natureza qualitativa. Foram coletados dados secundários e primários. Os dados primários utilizou como método de coleta de dados a entrevista semiaberta, visita e observação in loco. Para tratamento dos dados, foi utilizado a técnica de análise de conteúdo. O objeto de estudo foi a organização RECA – Reflorestamento Econômico Consorciado Adensado, que é uma Associação de pequenos agrossilvicultores, localizada em Nova Califórnia (RO). O projeto RECA possui mais de 2.700 hectares de Sistema Agroflorestal - SAFs implantados, utilizando vários tipos e esquemas de plantios com menos de 5% de áreas de monoculturas. Os resultados obtidos foram ricos e os mais relevantes foram: para que os produtores da BoP, de recursos naturais renováveis, de forma sustentável, possam ser sujeitos e tenham a governança das suas atividades necessita-se de uma nova visão da BoP (BoP 3.0); um novo tipo de negócio social do tipo associação-cooperativa foi criada; o uso dos tipos de recursos mobilizáveis e mobilizadores permitem uma análise multinível sustentável dos recursos naturais renováveis; numa BoP para produtores da BoP a ordem de importância das dimensões de sustentabilideade é social, ambiental e econômica, respectivamente; foi identificado um sistema de produção resultado de uma articulação do uso de recursos coletivos (da organização) e individuais (de cada produtor); necessita-se de um olhar para a inovação orientada para a sustentabilidade que seja interativa e não-linear; as relações deixam de ser dos produtores da ToP (topo da pirâmide) para a BoP e passam a ser dos produtores da BoP, tanto para os consumidores da ToP como os próprios consumidores da BoP.
The progress of the development actions have been placing challenges on the resource management, the various details of the types of resources available for use by organizations (in the area of business administration), or by geographical location, climate, topography and / or other local specificities, such as natural resources, they are escaping the standards imposed by the dominant strategic theoretical approaches currently in social sciences. In the case of megabioma Amazon, because of the patrimonial greatness and their specific locations, there are natural resources that are unique and inimitable, either individually or by the whole megabioma, despite the context of poverty in the region. To the extent that you are forced to use these resources, either by individuals, or by organizations, one can generate different types of conflicts, because the use of natural resources and environmental conflicts are repercussion scenarios for society due to promoting changes in the ecological and social development proposals. In this context, it takes the concerns of citizens, institutions and governments, requiring, however, an adequate knowledge of nature, its potential and dimensions, regarding the use of this guarantee and for future generations of the resources needed and their survival with quality of life, i.e., sustainability in this direction is in line with an environmentally sound management (sustainable) socially, just and economically viable, considering them as pillars of Sustainable Social dimensions, Environmental and Economic dimensions that guided this research. In this aspect of knowing how this process could occur in the Amazon, the Path Dependence theory was taken advantage of, enabling to organize in a methodological and theoretical trajectory way and the knowledge needed to obtain sustainable production, satisfaction with market allies and the business opportunities for local communities. So in this context, that involves resources, concerns about the sustainability innovations that guided this research are bonded with the local reality, in order to meet both sustainability as much as resolve impasses that have prevented substantial progress at the intersection of poverty, sustainability and environment. The concerns, related to the reduction of poverty is a fact that has been of concern, including Amazon megabioma, despite this being considered rich and potentially profitable, it has transcended the individual limits, corporate and national, becoming a global concern. In the 2000s, it has consolidated the idea that businesses have an important role in poverty reduction and from this arises the theory Base of the Pyramid (BoP), in order to enable the consumption for the poor (BoP 1.0), however as much as this theory has advanced, enabling greater participation, by involving the poor as co-creators (BoP 2.0), this is still considering the taxpayer or as mere consumers / employees, since the income for adding value to the products (co-creators) is with the company, ie, the theory has not been used for the production of the natural resources, with a view to generating income, improving the quality of life and sustainable organization, especially in a region like the Amazon. Thus, considering the opportunities in megabioma Amazon, it has been the understanding that the BoP opportunities, can go beyond consumption (BoP 1.0) or co-creation of value (BoP 2.0), and focusing on the BoP producers (producers NTFP), in an organized manner, alternatives can be developed to improve quality of life, based on sustainable renewable natural resources, emerging from the main question of this research: Is the Amazonian exploitation of natural resources in a sustainable manner, by BoP producers, characterizes as a new approach to the BoP, going beyond what is recommended by the BoP 1.0 and BoP 2.0? To achieve this, this research is guided by themes: Sustainability and Sustainable Development, Natural Resources, Internal Resource Based View (VBRI); Innovation and Innovation geared towards sustainability, Base of the Pyramid (BoP) and NTFPs (non-timber forest products), in which case the products are natural renewable Amazonia resources. The goal is to propose and apply a framework of sustainability of BoP for organizations that operate with natural renewable resources for producers (NTFPs) of BoP, the megabioma Amazon. The research is exploratory and descriptive; of qualitative nature. We collected primary and secondary data. The primary data used as a method of data collection to semi-open interview, visits and on-site observation. For data processing, we used the technique of content analysis. The object of study was the organization RECA - Reforestation Economic Dense Joint Venture, which is an association of small agro foresters, localized in New California (RO). The project RECA has over 2,700 acres of Agro Forestry System - SAF deployed using various types and planting schemes with less than 5% of areas of monoculture. The results were rich and the most relevant were: for the BoP producers of renewable natural resources sustainably, and they may be subject to the governance, what their activities need, is a new vision of BoP (BoP 3.0) , a new type of social business-type cooperative association was created, the use of the types of resources deployable and mobilizes allowing a multilevel analysis of sustainable natural renewable resources for BoP and for a producers of BoP, in order of importance of the social dimensions of sustainability is, environmental and economic, respectively; identified a production system result of a joint use of collective resources (the organization) and individual (each producer); it needs a look at innovation geared towards sustainability that is interactive and non-linear; relations cease to be producers of ToP (top of the pyramid) to the BoP and become producers of BoP, both for consumers of ToP as for the consumer of BoP.

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

This qualitative study focuses on business level strategy adopted by Twizza to compete in the bottom of the pyramid market in the Eastern Cape, South Africa. Twizza enjoyed huge success between the years 2010 - 2014 as a medium to large sized manufacturer of carbonated soft drinks in the Eastern Cape. In light of this, the current study seeks to answer the following: What business level strategy did top management at Twizza adopt to compete and grow in the BoP market in the Eastern Cape, South Africa? The study takes the form of a case study to explore and understand the patterns of decisions adopted by Twizza’s top management in competing at the bottom of the pyramid. As such, the main objective of the study was to identify the business level strategy adopted by Twizza which enabled their superior performance within the BoP market. The study adopts Porter`s typology to explore business level strategy. Stratified, purposive sampling was used to identify 4 top managers as participants in this study. A total of 7, semi-structured, interviews were used to collect critical incidents from top management of Twizza. This was the primary data used in this study. This type of data was combined with relevant information which was gathered via published press articles and on-line commentary. The study found that central to Twizza’s business strategy were four pillars, namely, strict control and management of manufacturing costs, product quality equal to that of market leaders, the ability of the organisation to manufacture its own raw materials and ability to ensure product availability to the market to the market. These findings reveal that Twizza employed a hybrid strategy, anchored by cost leadership. Thus, Twizza incorporated elements of differentiation and best value strategies to offer its customers affordable quality.

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