An Integrated Model for Strategizing with the Base of the Pyramid: An Action Research into a Mexican Agribusiness
21 Pages Posted: 16 Nov 2016
Date Written: September 10, 2016
Abstract
The Base of the Pyramid (BOP) strategy is an important opportunity for the world’s private sector to create new business opportunities while at the same time helping address and alleviate poverty. However, while the literature describes several cases, we still have limited knowledge about the process through which managers engage in BOP strategizing. This article provides a detailed account of how a Mexican agribusiness: Agroservicios Nacionales, SAPI de CV (ANSA) developed and implemented a BOP strategy to co-create value with its distributors and poor corn farmers. In doing so, it created a new, franchise-based business entity, AgroEstacion, to strengthen its position in the market and within the industry as a leader in BOP business practices.
Drawing on Dynamic Capability Theory (DCT) and Option-Driven Strategizing (ODS), we adopted action research to establish close collaboration among the firm’s top directors, a select group of its managers, designated local distributors, and the researcher. As a result, we offer an Integrated Model that firms can use to strategize BOP opportunities in a way that benefits both their business and the surrounding society. To illustrate the model, we present a detailed account of the strategizing process at ANSA, how AgroEstacion was conceived, how it was implemented, and the outcomes and experiences of the overall strategizing process. In conclusion, we draw on the empirical findings and extant theory to offer principles for application of the Integrated Model to strategize BOP.
Keywords: Bottom Of the Pyramid (BOP), Dynamic Capability, Options Thinking, Value Co-creation, Action Research, Integrated Model for strategizing BOP
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