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Ted Ladd Case Western Reserve University and Hult International Business School AOM Conference 2014 Paper at pubs.tedladd.com. Business Models in the BOP: Leveraging context in immature markets. Problem of Practice. Central grids underinvested Entre for distributed electricity
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Ted Ladd Case Western Reserve University and Hult International Business School AOM Conference 2014 Paper at pubs.tedladd.com Business Models in the BOP:Leveraging context in immature markets
Problem of Practice • Central grids underinvested • Entre for distributed electricity • Some profitable and scaling • Others failing Base of the Pyramid 1.6B w/out electricity 4B @ <$2/day
Kitchen Table Conversation Osterwalder & Pigneur (2010) BusinessModelGeneration.com
Boundary Conditions • Pre-existing demand for basic needs • Low penetration -> no competition • No market infrastructure • No mass communication • No efficient distribution
Sample: 30 entrepreneurs • 1 hour qualitative interviews • Recorded on Skype and transcribed • Coded with Dedoose in 3 phases
Findings 0. Canvas not ideal framework • Ventures sought market linkage between consumer and earned income • Price based on affordability • Growth through replication • Embedded into customer networks, habits, mental models and product constellations • Distribution via networks, partners or dedicated channel • Influences of government regulation • Incorporation of context into models
Canvas for the BoP Purpose and Metrics Replicability Market Linkage Impact Solution Product Affordability Dedicated Channel Social Networks Distribution Customer Activity Cycle Key Partners Embeddedness Customer Mental Model Govt Regulation Existing System / Context Product Constellation Customer Market
Social Venture Canvas* pubs.tedladd.com ted@tedladd.com Social Networks Scaling Osterwalder and Pigneur (2010) BusinessModelGeneration.com; Maurya(2012) Running Lean. *no longer for a business model