Realizing BOP Potential through Business Model Innovation

Abstract: There is an ever-growing interest among researchers and practitioners in base of the pyramid (BOP) markets. Still, the distinguishable challenges in terms of presenting a viable business model at the BOP are evident both in research and practice. This thesis aims to examine how private sector firms can innovate business models to attend to the BOP. A qualitative research approach in the form of a multiple case study centered on private sector firms operative in BOP markets across South Asia and Africa is adopted. The empirical material is collected through a series of semi-structured interviews along with secondary data. Based on previous BOP literature, the researchers conceive a conceptual framework suggested to increase the understanding of business model innovation at the BOP by linking BOP market characteristics to business model innovation implications. The conceptual framework is validated and revised by the analytic application of the framework on the empirical findings from the multiple case study. The findings of the study suggest partnerships with various actors facilitate business model viability at the BOP. Contrasting to previous literature, the findings of this study deemphasize the role of NGOs as a valuable partner in BOP settings. The findings also suggest innovation beyond pricing as a measure to ensure affordability at the BOP.