The growth in developing markets has created a need for businesses to re-look their strategies and become players in the emerging economies. With the advancement of growth in the developing countries, new opportunities are created with innovative solutions coming from developing countries and being sold to developed countries. Besides the projected growth and opportunities in the developing countries, the majority of people living in poverty are found in these countries. They are also faced with challenges such as lack of infrastructure and lack of property rights. Firms that want to successfully serve these markets will need to develop innovative business models that will create value for the shareholders, communities and other stakeholders.The purpose of this study is to explore business models developed for the Bottom of the Pyramid (BOP) in different industries and to understand what makes them successful despite facing the institutional voids experienced in developing countries with the intention to provide a high-level generic business model template that can be used for firms that are targeting the BOP markets.
The objective of this report, hence, was to explore the differences in business models developed by firms serving the BOP market; identify the challenges of doing business in developing countries and explore how those challenges are met; and identify the critical success factors in serving the BOP markets.