Business Strategy at the Base of the Pyramid

Christian Schrader, Juergen Freimann and Stefan Seuring

Business Strategy and the Environment, 2012, vol. 21, issue 5, 281-298

Abstract: The design and implementation of base of the pyramid (BoP) solutions or products require multinational companies to make adjustments to their business strategies and processes. While this strategic opportunity has been argued for in BoP related publications, a 'traditional' strategic management perspective has not been applied. This paper aims towards using the strategic management process as an analytic framework for case studies at the BoP, allowing analysis of which aspects are particularly critical for achieving respective solutions. This includes reaching sustainability related objectives. A total of seven cases covering both products and services have been researched, allowing a contribution towards the applicability of strategic management in respective situations. Further, the importance of specific strategy process elements is assessed. While it seems obvious that strategic management thought can be applied, the analytic criteria put forward (i.e. company, initial need, motivation, external analysis, stakeholder, product/service, strategic choice, organizational implementation, supply chain, economic outcome, effects on sustainable development) are particularly geared towards the BoP solutions. While previous literature centres on analysing needs, the case based research provides the insight that aspects of internal organization, supply chain management and sustainability outcomes are of equal importance. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

Date: 2012
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