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Business Strategy at the Base of the Pyramid

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  • Christian Schrader
  • Juergen Freimann
  • Stefan Seuring

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.

Suggested Citation

  • Christian Schrader & Juergen Freimann & Stefan Seuring, 2012. "Business Strategy at the Base of the Pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 21(5), pages 281-298, July.
    • Handle: RePEc:bla:bstrat:v:21:y:2012:i:5:p:281-298
    DOI: 10.1002/bse.727
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    References listed on IDEAS

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    1. Virgilio Panapanaan & Tytti Bruce & Terhi Virkki‐Hatakka & Lassi Linnanen, 2016. "Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP)," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 293-309, July.
    2. Eduardo Méndez-León & Tatiana Reyes & René Díaz-Pichardo, 2019. "PSS for the BoP: A Review from DfS to Sustainable Business Model [PSS pour la BoP: Une revue de DfS à Business Model Durable]," Post-Print hal-02435850, HAL.
    3. Mark Alan Heuer & Usman Khalid & Stefan Seuring, 2020. "Bottoms up: Delivering sustainable value in the base of the pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1605-1616, March.
    4. Rüdiger Hahn, 2013. "ISO 26000 and the Standardization of Strategic Management Processes for Sustainability and Corporate Social Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 22(7), pages 442-455, November.
    5. Raja Usman Khalid & Stefan Seuring, 2019. "Analyzing Base-of-the-Pyramid Research from a (Sustainable) Supply Chain Perspective," Journal of Business Ethics, Springer, vol. 155(3), pages 663-686, March.
    6. Robin Charbonnier & Pierre Poinsignon & Thomas Paris, 2021. "Du BoP dans le beat , une analyse des transformations numériques dans la musique," Post-Print hal-03328239, HAL.
    7. Marija Čutura & Ivan Novak & Dijana Ćavar, 2017. ""Sustainable development" as a label within business studies: What can be learned from a bibliometric analysis?," Notitia - journal for economic, business and social issues, Notitia Ltd., vol. 1(3), pages 11-24, December.
    8. Walter J.V. Vermeulen, 2015. "Self‐Governance for Sustainable Global Supply Chains: Can it Deliver the Impacts Needed?," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 73-85, February.
    9. Poul Houman Andersen & Lars Esbjerg, 2020. "Weaving a strategy for a base‐of‐the‐pyramid market: The case of Grundfos LIFELINK," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3687-3701, December.
    10. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    11. Aman, Sadaf & Seuring, Stefan, 2022. "Interestingly it's innovation: Reviewing sustainability performance management in the base of the pyramid (BoP)," Technovation, Elsevier, vol. 112(C).
    12. Anton Shevchenko & Xiaodan Pan & Goran Calic, 2020. "Exploring the effect of environmental orientation on financial decisions of businesses at the bottom of the pyramid: Evidence from the microlending context," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1876-1886, July.
    13. Carolin Brix‐Asala & Stefan Seuring & Philipp C. Sauer & Axel Zehendner & Lara Schilling, 2021. "Resolving the base of the pyramid inclusion paradox through supplier development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3208-3227, November.
    14. Gabriel, Cle-Anne & Kirkwood, Jodyanne, 2016. "Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries," Energy Policy, Elsevier, vol. 95(C), pages 336-349.
    15. Surajit Bag & Muhammad Sabbir Rahman & Gautam Srivastava & Peter Kilbourn & Nishikant Mishra, 2024. "Buyer–supplier partnerships and circular economy performance in food supply chains: Serial mediation by commitment contract and innovation performance," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1247-1264, February.
    16. Tassilo Schuster & Dirk Holtbrügge, 2014. "Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 188-203, March.

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