Chapter: Products and Services for the BOP

Quote:

These challenges are not isolated conditions. Involvement in BOP markets will challenge assumptions that managers in MNCs have developed over a long period of time. A new philosophy of product development and innovation that reflects the realities of BOP markets will be needed. This philosophy must represent a different perspective from those that we have grown accustomed to in serving Western markets.

What I expect to learn:

To know what transpires to be an applicable or an appropriate selection of products and services for the BOP

Review:                    

Now here comes what I have been searching for. Remember I told you that I was planning to have a business of my own but just don’t know which products or services to offer? Here comes the chapter that explained what suits the bottom of the pyramid. I noticed that the BOP is more concerned with practicality because life should be practical. It shouldn’t cause or base pain to those who just want to start their own business. It should start naturally. But you know, starting fresh is not so easy. Yes, you think of the target market then the idea of what to give the market then just do it but it is a lot more. It is offering what they need not only those that they don’t need. It is giving the public what they should be buying that will serve them purpose and value and not just something expensive that will make them drown in bills. It is becoming someone who understands what the market is looking for and providing that for them to have it in an accessible manner. It is enabling ways for them to achieve something more than what they want without really forcing the idea of earning money for the sake of becoming rich. Yes, money is important and as an entrepreneur, you will want to earn crazy money in a month or so but is that really possible? Yes it is but earning that much money in a month or so will not be easy because you need to become one with the market and you need to become what they need so every day, they will have to go and run to your store hoping to buy their favorite shirt that only you have.

What I learned:

·         A philosophy for developing products and services for the BOP

·         The twelve principles of innovation for BOP markets

·         Making each of the principles happen

·         Price performance

·         Innovation hybrids

·         Scale of operations

·         Sustainable development: eco-friendly

·         Identifying functionality of developed markets

·         Process innovation

·         Deskilling of work

·         Education of customers

·         Designing for hostile infrastructure

·         Interfaces

·         Distribution by accessing the customer

Integrative Questions:                          

1.    How did this chapter define the principle “Price Performance”?

2.    Define innovation hybrids.

3.    What do you mean by deskilling of work?

4.    Enumerate the twelve principles of innovation for BOP.

5.    Define each of the twelve principles by stating examples.