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The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to “Bottom-of-the-Pyramid” (BOP) settings. Second, to address how they can apply elements of BOP business models across their operations. We use the case of the entry of the Norwegian mobile telecom MNC Telenor into India as the empirical context. Prior to India, Telenor had operated successfully in Asian emerging economies by adapting its business model to local conditions. However, it had only operated in the upper income tiers of these countries. In India, its late entry meant that for the first time in its history it had to move beyond these upper income tiers and develop a business model suited to BOP. We apply an economic model terminology as a means to gauging the degree of business model innovation Telenor undertook. Telenor succeeded in its development of a BOP business model by working in close partnership with local firms. Although Telenor in India was operating at BOP, a number of the resultant innovations were deemed by Telenor to be transferable to top-of-the-pyramid operations across Telenor. In order to succeed in developing BOP business models MNCs must go beyond local responsiveness and engage closely with local partners. However, transference of elements of BOP business models to other parts of the MNC is contingent on there being a centralized integrating capability.

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of there being a ‘fortune’ to make at the Bottom of the Pyramid (BoP) market that was an opportunity for both businesses and consumers. The notion of the BoP market has been widely studied using urban and rural contexts as distinct classifications; yet many argue that the opportunity does not in fact exist in the rural BoP markets. In this chapter the authors examine the prospects in the rural BoP in Sri Lanka through a qualitative study using insights provided by industry practitioners who operate at the BoP level. Findings show that a large percentage of the income of multinational companies is derived from rural BoP markets. Compared to the urban sector, the rural BoP market indicates relatively higher disposable income and is viewed as an attractive market segment by industry practitioners. The findings also show that rural BoP people have more resources and skills than their urban counterparts, although the former commonly have lower levels of education. Moreover, the youth segment in both the urban and rural BoP markets was found to heavily consume social media. The authors conclude their discussion by providing several key proposals for organisations looking to seize opportunities in this market.

The purpose of this paper is to examine the social bottom line in subsistence markets or base of the pyramid. This examination aims to suggest that social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact.

A discussion of the double bottom line is presented. Social strategies are then discussed in terms of impact assessment at the community level and an impact assessment framework is developed reflective of the subsistence marketplace perspective. Implications are discussed in terms of poverty alleviation in subsistence markets and business

This examination suggests social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact. Focusing social strategies at the community level reframes the role of firms and promotes a business in service of the community approach. Assessing impact at the community level creates a long‐term sustainable focus to business in subsistence markets. This perspective is a more holistic view that incorporates the social, economic and environmental ecology of the community from a multi‐generational perspective that requires entrepreneurs to commit their life's work to developing and servicing the community they live in. Using “And beyond Africa” as a case example of the community‐level social strategy the theory and practice are integrated and the conceptual ideas can be understood as a holistic reflection of the community. Further, examining how social strategies at the community level are understood in terms of the individual and humanity level creates greater awareness of the importance of a social strategy at the community‐level. Suggesting that a social strategy focused on the community level can make the largest impact on all three levels (individual, community and humanity). By considering more than customer impact, a social strategy can look at a business's impact on the community and better understand its impact on humanity. This conclusion changes the role of the entrepreneur and business to be in the service of the community.

This paper develops a community‐level social strategy view to the double‐bottom line in subsistence markets or base of the pyramid.

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low‐income consumers.

The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.

There is no agreement in the literature about the potential benefits of the BOP approach for both private companies and low‐income consumers. However, further research on characterizing the BOP segment and finding the appropriate business model for attending the BOP can provide some answers to this issue.

The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.

The article presents a thorough analysis of the key elements involved in the BOP initiative: companies' motivations, characterization of the BOP consumers, and the business model to attend the BOP.

The purpose of this chapter is to demonstrate that sound, mainstream international business (IB) thinking should be applied when assessing the economic opportunities available to multinational enterprises (MNEs) in Bottom of the Pyramid (BOP) markets.

We describe and evaluate critically the key points made in the BOP literature about the alleged attractiveness of BOP markets, and the alleged strengths of MNEs to penetrate these markets successfully. We revisit the managerial implications from the BOP literature using an internalization theory lens.

We demonstrate the weak conceptual grounding of conventional BOP thinking, which suggests that MNEs from developed economies should be very entrepreneurial and should systematically serve BOP markets with new products and business models. We also show the fallacy of the idea that a “success template” in one BOP market would be easily replicable in other BOP markets and would allow the MNE to earn economies of scale and scope.

IB researchers should start conducting serious studies on the attractiveness of BOP markets for MNEs. They should also analyze seriously the micro-foundations of successful knowledge recombination in BOP markets and the limits to the transferability of success templates. Mainstream IB theory, namely internalization theory, is particularly well equipped to analyze the costs and benefits of entering BOP markets, building upon a comparative institutional logic.

Senior MNE managers should not allow themselves to be blinded by BOP gurus, advocating the alleged great benefits of penetrating BOP markets. BOP markets may be especially challenging international expansion targets for MNEs because of large institutional voids, high uncertainty, high “distance” vis-à-vis the home country market and the difficulties of transferring relevant knowledge from one BOP market to another.

This chapter is the first to show that mainstream IB research can be usefully applied to analyze the “real” attractiveness of BOP markets for MNEs. Comparative institutional analysis is proven to provide substantially more insight to make BOP market penetration work than past guru-talk on BOP markets.

This contribution discusses how multinational firms could serve poorer consumers in developed regions like Europe and through which business models, beyond the traditional corporate social responsibility (CSR) actions. MNEs have still limited capacity to address poverty in developed countries, notwithstanding some experience they have matured in developing markets and the striking figures of rising poverty in Europe and the United States. This research focuses on a specific issue: the role of MNEs in addressing poverty in developed markets, either leveraging on their previous expertise gained in developing countries or designing novel ad hoc solutions. The capacity of Western multinationals to tackle effectively the challenge of profitably doing business at the base of the pyramid (BoP) represents a controversial issue in literature and an intriguing topic for international business studies. The empirical research is based on three case studies. The companies have already gained experience in targeting BoP markets in developing countries. They are analyzed in order to understand better their approaches and their applicability in Europe.

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation in low‐income countries.

The paper confronts the literature on the “bottom of the pyramid” with the diffusion of innovations theory in order to identify the country characteristics that call for marketing changes when entering low‐income markets. The authors investigate for one case (the Tata Nano) whether – and how – the company implements changes to respond to these conceptually identified challenges. The case study is systematically analysed and structured according to Kotler's four Ps.

The case shows that companies can create products with functionality and cost advantage for the poor without compromising on safety and comfort. Creating an innovative distribution system pushes costs and builds trust between the company and the customer.

The study examines one case from the automobile industry. Marketers would benefit from multiple case studies.

The study's originality springs from the confrontation between the bottom of the pyramid and the diffusion of innovations theories. The study is valuable to marketers targeting the bottom of the pyramid. The case study is interesting because the industry (automobile) surprisingly targets a poorer non‐traditional customer base (the upper bottom of the pyramid).

The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries.

This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources.

The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitations and advantages of this transposition are also detailed.

A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries.

Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function.

Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.

Entrepreneurial ecosystem is a frontier issue in the field of enterprise strategy and entrepreneurship. As suggested by bottom of the pyramid (BOP) theory, entrepreneurs from base of the pyramid can gain the benefits of economic growth by obtaining equal entrepreneurial opportunities with appropriate support and motivation. However, theoretical framework to understand the ecosystem and help the people from the BOP to benefit from ecosystem is under-researched. Based on the investigation of the Taobao ecosystem case study, this paper developed a multi-layer framework to fill in the research gap.

This research adopts case study methodology for several reasons. First, case study methodology fits the explorative nature of this research to understand “what” and “how” a phenomenon happened (Yin, 2017). Second, case study research design can specify gaps or holes in existing theory with the ultimate goal of advancing theoretical explanations (Ridder, 2016). And third, it can provide researchers with contextual richness (Davison and Martinsons, 2016; Spigel, 2017).

Based on the literature review of the entrepreneurial ecosystem and the theory of the BOP, the initial framework of the inclusive entrepreneurial ecosystem is proposed. And then, based on the investigation of the Taobao village which is the typical inclusive entrepreneurial ecosystem, this paper explored how the inclusive entrepreneurial ecosystem emerges, develops and realises the co-creation between multiple actors. The emergence of Taobao village entrepreneurial ecosystem is because of the fact that ICT empowers BOP entrepreneurs. The development of entrepreneurial ecosystem presents a point-line-plane diffusion path, and co-creation to enhance inclusive entrepreneurship is realised by interaction and cooperation within social networks and integration of resources. Then, the framework of inclusive entrepreneurial ecosystem is further modified.

The complexity of entrepreneurial ecosystem facing BOP poses a major challenge to its actual operation. Therefore, it is necessary to study the driving factors of inclusive entrepreneurial ecosystems. In particular, ecosystem is a purposeful collaborative network of dynamic interactive systems, which has a set of changing dependencies in a given context. Research is still limited on socioeconomic actors’ interaction with each other in each stage to promote the evolution of entrepreneurial ecosystem. The extent to which they are intentionally designed or organically produced is still unclear, which is recommended for future study in this field.

It provides theoretical understanding on how to successfully form sustainable entrepreneurial ecosystem by integrating BOP entrepreneurs in value chain. The successful experience of Taobao village can provide contributions and implications for the management in practice. On the one hand, this can provide theoretical guidance for other countries and regions to build inclusive entrepreneurship ecosystems and help them to check and fill the gaps and build inclusive entrepreneurship ecosystems based on their local characteristics. On the other hand, this study provides theoretical guidance for solving the problem of poverty at the BOP, transforming the poor from the objects of help to successful entrepreneurs and thus realising regional sustainable development.

The significance of this study is to provide theoretical understanding on how to successfully form entrepreneurial ecosystem by practical investigation of entrepreneurial “habitat” at the BOP.

The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP markets are impoverished and therefore unable to afford their products. However, Prahalad’s seminal study on BoP markets as potential sources of wealth may have influenced the mindset of marketers around the world to view the demographic at the BoP as prodigious product markets waiting to be mined. This chapter, therefore, explores how some multinational corporations (MNCs) may have successfully implemented BoP marketing in Nigeria against the backdrop of diffusion of innovation (DoI) theory. The DoI theory tries to explain how and why new ideas, product, structures, or phenomena (innovations), spread across users and social systems. It posits among other things that there are at least five conditions that define the rate of adoption of an innovation, including relative advantage, compatibility, complexity, trialability, and observability. The authors find in the context of case companies, MTN Communications, Promasidor (Cowbell), and Dufil Prima Foods (Indomie) Nigeria that these elements contribute to building a viable explanation for the wide adoption of their products in the Nigerian BoP markets. Regarding the economic viability of BoP markets, the authors find that MNCs may have to embrace a commitment to long-term profitability, focus on economies of scale as a basis for competitiveness, and realize that in BoP markets, defining a marketing model is a continuous process.