Sourcing or selling: the Value Flame at the Base of the Pyramid

• Published in: Marketing intelligence & planning Vol. 29; no. 3; pp. 233 - 246
• Main Authors: Williams, Robert L, Omar, Maktoba, Ensor, John
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 10-05-2011
• Subjects: Competition; Consumption; Dependency theory; Developing countries; Economic development; Economic growth; Economic reform; Emerging markets; Infrastructure; International trade; LDCs; Market entry; Market shares; Marketing; Multinational corporations; Per capita; Profits; R&D; Research & development; Sourcing; Studies; Sourcing; Selling; Emerging markets
• ISSN: 0263-4503; 1758-8049
• DOI: 10.1108/02634501111129220

Purpose - Much has been written concerning the value and validity of the bottom of the pyramid (BOP) model, as a strategy for multi-national corporation (MNC) growth. The model presented in this paper adds to the discussion of strategic possibilities to tap the potential of emerging markets. This paper seeks to address these issues.Design methodology approach - The paper first discusses trends in economic growth in emerging markets, global strategies, and the BOP market, then analyzes the blue ocean strategy (BOS) of value innovation.Findings - The paper develops the Value Flame at the Base of the Pyramid (VFBOP) model by combining BOP and BOS strategies to potentially offer opportunities for MNC market entry as well as market supply, to drive revenues and expand global market share.Research limitations implications - As a concept, the model must be validated by empirical and case research to ascertain the shape and dynamics of the model. Future research can establish the parameters of the flame.Originality value - It is believed that the VFBOP model is the first to address some of the limitations of BOP strategy while profiting from the BOS model, in order to fully benefit from sourcing and selling to emerging markets.