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2020 | OriginalPaper | Chapter

3. Business Models in the Bottom of the Pyramid Context

Author : Philipp von Carlowitz

Published in: Success in the Bottom of the Pyramid Market in Africa

Publisher: Springer International Publishing

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Abstract

How can one generate profit while improving the situation of the BoP population? This question and the various economic opportunities at the BoP have pointed researchers and practitioners toward a systematic investigation of business models in the context of the BoP. As BoP markets exhibit divergent income structures and distribution systems compared to high-income and developed markets they require new business approaches (Dodgson et al. 2014; Ricart et al. 2004). Articles on the subject (Bocken et al. 2014; Boons and Lüdeke-Freund 2013) contain several narrative elements but leave unresolved how business model elements are chosen, for what purpose, and what lessons can be learned from these examples. There is still no consensus on how resources at the BoP need to be configured in order to create value since few organizational templates exist (Seelos 2010). This chapter looks at success factors and challenges of business models aiming at the Bottom of the Pyramid.

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previous chapter The Bottom of the Pyramid Concept
next chapter Political and Macroeconomic Situation in Sub-Saharan Africa
Footnotes
1
For the purpose of consistency, the logic of the book will follow the broad definition of value generation but within the section differentiates between value delivery and value creation.
 
2
Karnani (2007) pointed out that selling in smaller packages with a higher profit is not actually increasing affordability as the overall price for comparable volumes is much higher. Nonetheless, if affordability is interpreted as “being able to buy a product at any given moment” then small package sizes do increase affordability.
 
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Metadata
Title
Business Models in the Bottom of the Pyramid Context
Author
Philipp von Carlowitz
Copyright Year
2020
Book
Success in the Bottom of the Pyramid Market in Africa

Print ISBN: 978-3-030-59067-3

Electronic ISBN: 978-3-030-59068-0

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-59068-0_3