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Creating Value at the Bottom-of-the-Pyramid: A Case Study of Redefining Business Models at Novo Nordisk

Tsoi, Lee Sho LU and Reykherdt, Natalia LU (2017) BUSN09 20171
Department 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)
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author
Tsoi, Lee Sho LU and Reykherdt, Natalia LU
supervisor
organization
course
BUSN09 20171
year
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},
  keyword      = {Business and Society,Corporate Social Responsibility,Bottom of Pyramid,Mutual Value,Business Model,Novo Nordisk,Partnerships},
  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},
}