Frugal Innovation and its Implications for Business Firms’ Competitive Advantage

• Main Authors: Mar Esteve, 伊思緹
• Other Authors: Kuo-Tai, Kuo
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/57127017507189631286

碩士 === 輔仁大學 === 國際創業與經營管理學程碩士在職專班 === 103 === The purpose of this thesis is to explore the emerging phenomenon of innovation that begins from the base of the pyramid in low-income markets. Generally thinking, majority of people relate innovation with developed countries and large markets that tend to focus only on high-income economies chaired by multinationals. The concept of frugal innovation has started to be the focus in many industries recently. It can be defined as offering more with less resources while at the same time starting by satisfying the needs of the customers from the bottom of the pyramid instead of doing it as it is usually performed. This thesis aims to develop and extend existing theory on frugal innovation with an emphasis on business model and social non-known cases. Besides, the purpose of this paper is to find and diffuse the infinite benefits and successful cases surrounding this still brand-new topic. In the 21sr century, Innovation has become not only one of the main strategic factors of every organization but also what generates a competitive advantages between companies. A recent Accenture survey found that two-thirds of the CEO’s surveyed recognized innovation as one of the five most critical factors required to succeed and to sustain a competitive advantage (Kambil, 2002). However, despite claims that innovation is a key priority, diffusing it within an organization proves to be a difficult challenge for many. Most companies are able to actualize less than one in five promising ideas, and only one in eight executives feel strongly that their companies excel at implementing innovation (Kambil, 2002).