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Determining business models in bottom‐of‐the‐pyramid markets

Sungbum Jun (Department of Industrial Engineering, Seoul National University, Seoul, South Korea)
Dongmyung Lee (Department of Industrial Engineering, Seoul National University, Seoul, South Korea)
Jinwoo Park (Department of Industrial Engineering, Seoul National University, Seoul, South Korea)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 16 August 2013

Abstract

Purpose

This paper aims to develop a multi‐criteria approach for determining business models in bottom‐of‐the‐pyramid (BOP) markets.

Design/methodology/approach

Analytic network process (ANP) was employed to construct a decision‐making model of quantitative and qualitative factors relevant to BOP markets. Alternatives can be evaluated, respectively, and further business implications can be delivered to decision makers through continuous improvement of the model.

Findings

ANP is a tool that can address the interdependencies among decision elements and alternatives in the BOP markets. Moreover, it can be employed in structural analysis of the network of relationships among the selection criteria.

Practical implications

Decision makers can make more informed decisions by using the proposed approach, which is targeted toward BOP customers. This approach also overcomes the flaws of previous approaches.

Social implications

The successful selection of business models for BOP markets can change how multinational companies think about BOP consumers, allowing the poor to be perceived as value‐demanding customers. In addition, if multinational companies create new local business models, the quality of life of the poor could be improved.

Originality/value

The consideration of interdependencies among the criteria relevant to the selection of successful business models in BOP markets is a novel conceptual contribution.

Keywords

Citation

Jun, S., Lee, D. and Park, J. (2013), "Determining business models in bottom‐of‐the‐pyramid markets", Industrial Management & Data Systems, Vol. 113 No. 7, pp. 1064-1082. https://doi.org/10.1108/IMDS-02-2013-0060

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited