Four billion people live with less than 8$ per day. Stuart Hart and C.K. Prahalad describe people living in this income segment as “Base of the Pyramid”. They show that these four billion people are involved in economic processes: They consume, offer their manpower and their products on local markets and they run businesses. So far, the developed world perceived them as aid recipients. Hart and Prahalad invented the idea that multinational enterprises can approach this huge market when they invest in innovative products and enable the poor to do business and integrate them in their value chain.
By conducting three analyses the author aimed at understanding how companies involved in the eBook-reader industry can approach markets at the base of the pyramid: A country analysis to identify countries with favourable market potentials; an industry analysis to understand the main forces within the industry, and a business-strategy analysis to understand the strengths and weaknesses of four selected competitors.
Based on these findings and considering international recommendations, a strategy map has been developed for the eBook-reader industry. Companies can only successfully approach the base of the pyramid when they adapt their products and processes, invest in removing market constraints, leverage the strengths of the poor, combine resources and capabilities with others and engage in policy dialogue with governments.
According to the industry, 2010 might become the year of the eBook-reader. If produced at much lower costs than today and marketed as a tool for education, eBook-readers could become a useful product for the base of the pyramid.
This desk research gives companies a first orientation when considering markets at the base of the pyramid. According to Hart and Prahalad, an open exchange and learning process between entrepreneurs, scientists, companies, NGOs and international development organisations is key to drive innovations at the base of the pyramid.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- The Base of the Pyramid
- Business Strategy
- Country Analysis
- Mexico
- Colombia
- Brazil
- South Africa
- Thailand
- Kazakhstan
- Macedonia
- Industry Analysis
- Threat of New Entrants
- Bargaining Power of Buyers
- Threat of Substitutes
- Bargaining Power of Suppliers
- Competitive Rivalry
- Business Strategy Analysis
- Amazon
- Sony
- Apple
- Shanda Literature
- Strategy Map
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to analyze how companies involved in the eBook-reader industry can approach markets at the base of the pyramid, specifically focusing on the four billion individuals living on less than $8 per day. The analysis is based on a country analysis, an industry analysis, and a business strategy analysis. The research investigates market opportunities, threats, and industry forces, as well as the strengths and weaknesses of potential competitors.
- The potential of the "Base of the Pyramid" market for eBook readers
- Country-specific market opportunities and challenges
- The competitive landscape of the eBook-reader industry
- Business strategies for successful market entry at the base of the pyramid
- The importance of collaboration and innovation for sustainable development
Zusammenfassung der Kapitel (Chapter Summaries)
- The Executive Summary provides an overview of the research, highlighting key findings and recommendations.
- The Introduction defines the research problem and outlines the objectives, methodology, and structure of the thesis.
- The chapter on the "Base of the Pyramid" concept explains the significance of this market segment and discusses the potential for business opportunities.
- The Business Strategy chapter analyzes the competitive landscape of the eBook-reader industry and identifies key players, such as Amazon, Sony, and Apple.
- The Country Analysis explores the market potential of specific countries like Mexico, Colombia, Brazil, South Africa, Thailand, Kazakhstan, and Macedonia. It examines relevant factors such as educational infrastructure, political stability, and the potential for growth within the BOP segment.
- The Industry Analysis investigates the forces driving the eBook-reader industry, including the threat of new entrants, the bargaining power of buyers, the threat of substitutes, the bargaining power of suppliers, and the intensity of competitive rivalry.
- The Business Strategy Analysis examines the strengths and weaknesses of various companies operating in the eBook-reader market.
- The Strategy Map chapter outlines a strategic roadmap for companies seeking to enter the BOP market with eBook readers, emphasizing the need for product adaptation, market constraints removal, and leveraging the strengths of the poor.
Schlüsselwörter (Keywords)
The primary focus of this research is on the base of the pyramid market, eBook readers, business strategy, country analysis, industry analysis, and sustainable development. Key themes include market opportunities, competitive advantage, product innovation, and collaboration for social impact. The analysis encompasses factors such as low-income markets, emerging economies, educational access, technology adoption, and strategic market entry.
- Quote paper
- Peter Rave (Author), 2009, How to approach the "Base of the Pyramid", Munich, GRIN Verlag, https://www.grin.com/document/142744