Key Success factors for entering the Base of the pyramid in Honduras using the bottom – up development approach

• Main Authors: Stefanny Ráquel Bustillo, 史芬妮
• Other Authors: Hsien-Lun Hu
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/fwt3ss

碩士 === 國立臺北科技大學 === 環境工程與管理研究所 === 101 === Several researchers and business executives believe that western multinationals can create new markets and help eradicate poverty at the same time, once they recognize the poorest of our world, the so-called “base of the pyramid” (BoP) as novel consumers and innovative producers. To be successful in this shared party mission, MNCs are dependent on successful collaboration with local parties in the developing countries specifically referring to Honduras in this research paper. Nevertheless, collaboration with western partners is based on other groups rather than collaboration with local parties, often living in remote communities. The Bottom-up approach development perspective and knitting of trust appear to be two rather new yet popular terms which in conjunction with the BoP literature provides quite some propositions on building the bottom-up approach. One important factor for succeeding in finding new strategies is to develop suitable services, products and business models for the BOP is engaging directly with the poor and thus, choosing a bottom-up approach. The “classic” development literature however, has made this mind‐shift over 20 years ago. Bottom up approaches, which give more power to the poor, are taking advance. This vast know-how however, hasn’t found a systematic consideration in the concept of the BOP yet. This study will take a closer look at bottom up development approaches and argues for the importance of integrating this know how in the BOP debate by highlighting the relation between the concepts. It complements therefore are a missing, but value creation forms a very important piece in the theoretical debate on the Base of the Pyramid. Hence, this study sets out to explore how MNCs build small business with local communities in developing countries. Preceding from present BoP and trust literature this thesis studied a BoP cases in Honduras. The knowledge gained and the questions posed can be subdivided into three categories. Which are drivers, circumstances and success factors. Hence, these three play a vital role in the analysis, indicating that a successful development approach needs the patient knitting of these three in order to develop and grow in a fruitful BoP project. Moreover the results of this thesis show that there is a strong correlation between achieving success in the BoP and the bottom-up approach development approach. Besides, companies need to deal with major challenges, namely resource scarcity or the lack of scaling up logistics. In doing so, they ought to think out of the box and find fundamentally new business models, because the BOP market is different from developed markets and only when finding creative and innovative new ways as well as a natural involvement and understanding of the needs of those at the BoP, a firm will successfully flourish, operate and in the long-run develop confidently in the BOP market.