...our sales come from 20 percent of our customers.”1 One recent business theory that has challenged this rule is the so called BOP or Bottom of the Pyramid perspective, developed and popularized by C.K. Prahalad.2 It refers to the around 4 billion people at the bottom of the economic pyramid with a purchasing power of US$2,000 per year or less. Prahalad and colleagues have proposed that these low-income consumers represent great potential but require a unique mix of pricing, promotion, low cost delivery, and effective communication in order to successfully reach.3 The key to selling to BOP consumers is that an MNC strategy be affordable, accessible, and socially driven. Nokia is one company that is taking this perspective seriously. Business interest in BOP markets is rising. Multinational companies have been leaders in this trend, especially in food and consumer products. And large national companies have also taken a leadership role, proving to be among the most innovative in meeting the needs of BOP consumers and producers, especially in such sectors as housing, agriculture, consumer goods, and financial services. And small start-ups and social entrepreneurs focusing on BOP markets are rapidly growing in number. But perhaps the strongest and most dramatic BOP leadership success story is mobile telephony.4 The Global ICT Market The measured BOP market for ICT—information and communication technologies and the services they provide—is $30.5 billion for Africa (11 countries)...
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...One Night with Blue Note “One Night with Blue Note” directed by John Jopson is based on a jazz concert performed at The Town Hall in New York City on February 22, 1985. This film brings together some of the jazz legends associated with Blue Note over the years as well as some newly signed artists. The concert introduces more than 30 of the world’s most revered jazz musicians in the form of all-star bands and is considered by many to be one of the most important nights in jazz history. Some of the great jazz musicians we heard were Freddie Hubbard, Jackie McLean, Jimmy Smith, Woody Shaw, Walter Davis Jr., Michel Petrucciani Art Blakey, Stanley Turrentine, Joe Henderson, Grover Washington, Jr., and Tony Williams. My favorite artist in the film was Michel Petrucciani. He is not only a great talented pianist but an inspiration as well. Michel Petrucciani was born with osteogenesis imperfecta which is a genetic disease that causes brittle bones and short stature. He still became one of the most accomplished jazz pianists of his generation, despite having arms which caused him pain. I believe that he teaches us that anything is possible with hard work and dedication no matter how hard things may seem. Although I am not a big music fan, I feel this concert was worthwhile watching as well as listening too. At the end I am glad I watched this film because it allowed me to be more open minded to music and the different styles and forms. These people and countless more, and innumerable...
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...Kayla Smith Society & Public Interest November 18th, 2014 Quiz 4 1. Parhlad in his discussion, focused on business principals that can be implemented to serve the BoP markets. Some of these principals were discussed in terms of a halfway house servicing poor pregnant teenage girls. Our goal was to generate revenue while serving a social goal of assisting people and breaking the cycle of poverty. We focused on this halfway house (or safe haven) getting the girls housed to provide a service to the company. This service would hopefully generate enough revenue to pay the rent for the house itself and for its generated revenue. We discussed Parhlad’s principals by designing this halfway house in a way that would show others we could still make money while catering to the poor. The services that we came up with for the girls to be involved in (based on Parhlad’s principal of innovation) included janitorial and maid services, development of a farmers market, childcare services etc. Our goal was for the girls to provide consumers with their skill sets so that they could earn money (based on Parhlad’s principal of Price Performance) all while being provided an education and safe environment in the halfway house. Parhlad gave us the base for our ideas of implementation challenging societies norms that helping the poor does not help us. By creating this safe haven and even making it a sort of respected establishment, we could distribute the house in nicer areas so that the girls’...
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...Access to the Benefits of the Global Economy. Every Person as a Consumer: Afford world class products and services, Shape their own experiences. + Every Person as a Producer: Have Access to Global Markets © C.K. Prahalad 4 Democratizing Commerce: Inclusion of 4 billion underserved in the Market Economy Micro Consumers & Micro Producers BOP as a Market The Fortune at the Bottom of the Pyramid Consumers Shape their own Experiences Consumers ~ Firm Co Creation of Value The Future of Competition 5 © C.K. Prahalad BOP: A Contested Ideological Market? Public Sector, AID, Multilaterals Universal Solutions CSOs Social Justice Personal Philanthropy Agendas New Business Opportunities Private Sector: Large Firms, including MNCs ? © C.K. Prahalad 6 What You See is not What it is……….. Source: FT, April 20, 2004 © C.K. Prahalad 7 Source: Mr. Subrato Bhowmik © C.K. Prahalad 8 The Cell Phone Industry: 1. Great growth Story in BOP markets around the world Sub Saharan Africa, S. Africa China, India Thailand, Philippines, Indonesia Latin America 2.5 billion connected around the world 2. The industry has Cracked the BOP Code 3. India is one of the fastest growing Markets: 7 million/month 4. Cost of service: Lowest in the world 5. Market Cap of 4 firms in India: $ 75 billion + 6. Cell phone is...
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...45 2014 January International Business Studies and the Imperative of Context. Exploring the ‘Black Whole’ in Institutional Theory Michael Jakobsen ©Copyright is held by the author or authors of each Discussion Paper. Copenhagen Discussion Papers cannot be republished, reprinted, or reproduced in any format without the permission of the paper's author or authors. Note: The views expressed in each paper are those of the author or authors of the paper. They do not represent the views of the Asia Research Centre or Copenhagen Business School. Editor of the Copenhagen Discussion Papers: Associate Professor Michael Jacobsen Asia Research Centre Copenhagen Business School Porcelænshaven 24 DK-2000 Frederiksberg Denmark Tel.: (+45) 3815 3396 Email: mj.int@cbs.dk www.cbs.dk/arc International Business Studies and the Imperative of Context. Exploring the ‘Black Whole’ in Institutional Theory Michael Jakobsen Associate Professor Asia Research Centre Copenhagen Business School mj.int@cbs.dk Abstract The aim of this article is to take a critical look at how to perceive informal institutions within institutional theory. Douglas North in his early works on institutional theory divided the national institutional framework into two main categories, formal and informal institution or constraints as he called them. The formal constraints consisted of political rules, judicial decisions and economic contracts, whereas informal constraints consisted of socially sanctioned norms...
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...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...
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... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below: Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs. Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...
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... Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon zinc, miniature and rechargeable batteries. They produce more than...
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...Session 6 Article Summary—From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler Development of new trade networks feeding consumption have developed, influencing the way Africa integrates into the global economy. Dobler analyses different trade networks that link Oshikango, Nambibia to the world through four case studies on Scotch whisky, Brazilian furniture, Japanese used cars and Chinese sneakers commodities. Through the case studies, he exemplifies how there has been a shift from old colonial domination of trade to new manufacturing countries or trade routes, as well as the essential role of migrant entrepreneurs in these routes. The similarity underlying the different trade networks is that while the people involved in them are of different ethnicity or country of origin, they share the same profit-seeking motive and the opportunities in the international system shape them to become successful examples as facilitators of global trade. Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade ...
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... With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution will offset decreased margins. Additionally, by first “testing the waters” through distribution in other markets, RC can better target direct markets in which to serve. Open New Storefronts in Western Canada Roger’s Chocolates should utilize one of their core-competencies of the “retail experience,” to increase penetration in different markets. While opening new stores can be...
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...50P Tax Hike Analysis Econ201 2/12/14 50P The 50P tax was a brilliant idea at one point or another. However in this current economy and the market failure this, in my opinion, this is not a piece of legislature that will help anything. The tax was made to help bring in revenue and to make the higher income people to pay their fair share. This seems to be a popular idea that the wealthier individuals aren’t paying their fair share of taxes although the wealthy pay the largest amount of taxes. Majority tax The 50P tax is no different; it raises taxes in a tough economic time and that is always a bad idea it doesn’t matter who the tax is on. When you raise taxes you actually decrease revenue and hurt the economy. To strengthen a stalling economy the “Fed” should pull back as much as possible without causing too many ripples. This would let the free market have reign and give a steady boost to the economy. The 50p plan is one that I like to call simple complex simple or a Majority tax. £35,000 should pay tax around 20%. Income up to £150,000 you will pay tax at 40%, and any income you get above £150,000 you will pay tax at 50% which is where the 50p rate comes from. Great Britain had done away with that policy earlier, but it looks like it is back and here to stay. The total needed to handle Great Britain’s national debt is pitiful compared to America’s but they are two different countries and can’t be compared on that basis. Pros There are some good things to the 50P...
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...Global Business Strategy A firm employing a global business strategy operates in several markets around the world, but offers the same product or service with only minor changes in the local market. These businesses are typically very centralized, with the research and development and decision making taking place in the home country. Coca-Cola uses a global business strategy. It offers the same product worldwide and the firm's decision making is centered in the United States. Multidomestic Business Strategy Firms employing a multidomestic business strategy operate worldwide, but in a very different manner than global firms. Multidomestic firms are highly decentralized, with strategies and decisions being made large in the local market. For example, a firm using a multidomestic strategy may develop different products in different markets and it will usually leave the marketing in specific countries up to the local offices. Local offices tend to have a great deal of autonomy and freedom. Sponsored Links Manufacturers From China Inquire for Lower Prices in China Contact Quality Manufacturers Now! www.globalmarket.com Advantages The advantage of a global strategy is that it allows for greater efficiency. Because everything is centralized with a global strategy, there is no duplication of duties. Furthermore, it is possible to produce goods in one location and to export them worldwide. The...
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...the Euro-Disney’s losses in the first year. The people of Paris who are not very familiar with American cartoons, lavish expenditure on the construction which exceeded $340 million than the expectations. Expensiveness, Olympics in Barcelona and various customs of French were not taken into consideration. French government quotas on non-French movies. Ignoring cultural aspects of French are the factors of Euro Disney’s poor performance in the first year. Chinese people lack of knowledge of Disney characters. Size of the park. Not exciting or similar to Chinese amusements parks are the factors for the Disney venture’s loss in Hong Kong. Q2. These factors are foreseeable and controllable. The proper market research could avoid many of the factors. When exploring international markets the cultural aspects must be considered. For example French have their own cartoon characters, promoting them along with the existing Disney mark characters could bring the locals close to the project. Economic situation of the marketing segment should have been taken into consideration to avoid the migration of customers. There should be something exciting in such parks to draw the customers in a new launch. In Hong Kong this is the first mistake which is not addressed. Ignoring self-reference criterion and Ethnocentrism is what seems to me is the major fault. This can be rectified; it is evident from the Paris Disney improvement. Q3. Ethnocentrism is the main issue in Euro Disney development. The...
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