Creating Value at the Bottom-of-the-Pyramid: A Case Study of Redefining Business Models at Novo Nordisk
(2017) BUSN09 20171Department of Business Administration
- Abstract
- Companies seem to be increasingly interested tapping into bottom-of-the-pyramid (BoP) markets, but only a few multinational corporations have managed to achieve a successful breakthrough. This paper aims to identify several critical aspects of BoP business models that have to be redefined in order to enable mutual value creation in low-income countries. A qualitative approach is adopted in the form of a case study of Novo Nordisk A/S. We built our framework based on a literature review and empirical analysis of the company’s two initiatives in Bangladesh and Kenya. The empirical information has been gathered mainly from interviews and secondary data. Our findings suggest that mutual value creation in BoP markets can be achieved through... (More)
- Companies seem to be increasingly interested tapping into bottom-of-the-pyramid (BoP) markets, but only a few multinational corporations have managed to achieve a successful breakthrough. This paper aims to identify several critical aspects of BoP business models that have to be redefined in order to enable mutual value creation in low-income countries. A qualitative approach is adopted in the form of a case study of Novo Nordisk A/S. We built our framework based on a literature review and empirical analysis of the company’s two initiatives in Bangladesh and Kenya. The empirical information has been gathered mainly from interviews and secondary data. Our findings suggest that mutual value creation in BoP markets can be achieved through careful consideration of BoP market constraints, utilising a company's core capabilities, engaging in partnerships with non-traditional stakeholders, raising customer’s awareness and redefining main business model components such as value proposition, value creation and delivery and value capture and measurement. Regarding the temporal dimension, we argue that the BoP-oriented business model requires a shift in management decision-making perspectives from focusing on short-term market performance to adopting more long-term strategic views of the low-income markets. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8917830
- author
- Tsoi, Lee Sho LU and Reykherdt, Natalia LU
- supervisor
- organization
- course
- BUSN09 20171
- year
- 2017
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Business and Society, Corporate Social Responsibility, Bottom of Pyramid, Mutual Value, Business Model, Novo Nordisk, Partnerships
- language
- English
- id
- 8917830
- date added to LUP
- 2017-06-27 10:47:24
- date last changed
- 2017-06-27 10:47:24
@misc{8917830, abstract = {{Companies seem to be increasingly interested tapping into bottom-of-the-pyramid (BoP) markets, but only a few multinational corporations have managed to achieve a successful breakthrough. This paper aims to identify several critical aspects of BoP business models that have to be redefined in order to enable mutual value creation in low-income countries. A qualitative approach is adopted in the form of a case study of Novo Nordisk A/S. We built our framework based on a literature review and empirical analysis of the company’s two initiatives in Bangladesh and Kenya. The empirical information has been gathered mainly from interviews and secondary data. Our findings suggest that mutual value creation in BoP markets can be achieved through careful consideration of BoP market constraints, utilising a company's core capabilities, engaging in partnerships with non-traditional stakeholders, raising customer’s awareness and redefining main business model components such as value proposition, value creation and delivery and value capture and measurement. Regarding the temporal dimension, we argue that the BoP-oriented business model requires a shift in management decision-making perspectives from focusing on short-term market performance to adopting more long-term strategic views of the low-income markets.}}, author = {{Tsoi, Lee Sho and Reykherdt, Natalia}}, language = {{eng}}, note = {{Student Paper}}, title = {{Creating Value at the Bottom-of-the-Pyramid: A Case Study of Redefining Business Models at Novo Nordisk}}, year = {{2017}}, }