Procedia Social and Behavioral Sciences Procedia - Social and Behavioral Sciences 00 (2012) 000-000
Available online at www.sciencedirect.com
The 2012 International Conference on Asia Pacific Business Innovation & Technology Management
The Role of Innovation at the Bottom of The Pyramid in Latin America: Eight Case Studies
César Antúnez-de-Mayolo PAD School of Management, Aldebarán 160 Lima 33, Peru
Based on qualitative research, the author studied the experiences of eight firms, each one operating in a specific
country in Latin America, among Peru, Mexico, Ecuador, Colombia, Chile, and Argentina, from different
industries and at different stages of implementation on their Bottom of the Pyramid incursions. Through an
analysis, the author uncovers what types of innovation were best to reinforce the value propositions to address
low-income consumers´ problems.
© 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Asia
Pacific Business Innovation and Technology Management Society (APBITM)."
Keywords: bottom of the pyramid; base of the pyramid; latin america, innovation
1. Objective and Methodology
The objective of this article is to find, through theoretical and qualitative research, common factors on their innovation approach among firms that have been attending consumers from markets at the Bottom of the Pyramid (BoP) in Latin America. The author selected eight examples of firms operating in six different countries in the region, from various industries and with different sizes and levels of maturity and deployment on their BoP incursions.
2. Bottom of The Pyramid
The presence of multi-dimensional personalities means that not every business should be measured by the single objective of profit maximization, since businesses have a key role in society . However, the main attention of businesses to poverty had been regarding Social Responsibility Programs; until 1999, when C.K. Prahalad and Stuart Hart wrote an article titled 'Strategies for the Bottom of the Pyramid: Creating Sustainable Development' . This work was the first that introduced the BoP concept, attempting to raise awareness of the world economic pyramid and the vastly untapped market
César Antúnez-de-Mayolo / Procedia - Social and Behavioral Sciences 00 (20112) 000-000
of 4 billion people living on less than $1,500 Purchasing Power Parity (PPP) a per capita income. The poor at the base of the global socio-economic ladder, primarily transact in an informal market economy, due to the cost, complexity and unfamiliarity of transitioning to the formal economy , and the BoP perspective relies on the view that unmet societal needs are also potential business opportunities , , .
Most of the BoP research concentrates on estimating the BoP market and on summarizing case studies and firms' alliances with different stakeholders. However, less...