Value Creation In Business Models For Mobile Services At Bottom Of The Pyramid In Sub-Saharan Africa

Firms face a range of challenges when doing business at the Bottom-of-the-Pyramid (BoP) in emerging markets, including the need to adapt their business models to emerging markets’ institutional, cultural and economic features. This study investigates business models for BoP segments in the mobile telecommunications industry in Africa. Drawing from original data from the case studies, we examine how firms serving BoP can set up their value creation mechanisms in order to deliver wide value propositions that meet the needs of low-income users and underserved communities. The study provides deeper analysis on the variations that exist across BoP business models, and find that BoP business models deployed by historically BoP-focused organizations create inclusive value by being embedded in wider innovation ecosystems. On the other hand, BoP business models that resemble traditional low-end market entry initiative can provide inclusive value without extending the value creation activities for offering complementary services. Our paper advance understanding on emerging research perspectives on the BoP and elaborate on the multidimensionality of value proposition design for BoP segments of emerging markets. In doing so, we support the notion that BoP-focused innovations require looking beyond the consumers of innovation, but also at other possible beneficiaries, in order to create solutions that are inclusive and have a wider impact on stakeholders serving the BoP.