Designing A Framework To Design A Business Model For The 'Bottom Of The Pyramid' Population

Authors

  • Tanye ver Loren van Themaat Department of Industrial Engineering University of Stellenbosch, South Africa
  • Cornelius SL Schutte Department of Industrial Engineering University of Stellenbosch, South Africa http://orcid.org/0000-0002-0119-720X
  • Eric Lutters Extra-ordinary Professor, Department of Industrial Engineering University of Stellenbosch Also Faculty of Engineering, University of Twente, Enschede, Netherlands
  • Denzil Kennon Department of Industrial Engineering University of Stellenbosch, South Africa

DOI:

https://doi.org/10.7166/24-3-633

Abstract

This article presents a framework for developing and designing a business model to target the bottom of the pyramid (BoP) population. Using blue ocean strategy and business model literature, integrated with research on the BoP, the framework offers a systematic approach for organisations to analyse and understand all aspects of the BoP and their environment, and then design a business model that minimises the risk of failure and fulfils the core requirements of the BoP.

A case study on Capitec Bank demonstrates how the framework can be applied to the real world. The case study shows the practical examples that Capitec uses to target the BoP successfully, and the logic behind these actions. Further validation was done through interviews with experts in the relevant fields used in this study.

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Published

2013-11-26

How to Cite

ver Loren van Themaat, T., Schutte, C. S., Lutters, E., & Kennon, D. (2013). Designing A Framework To Design A Business Model For The ’Bottom Of The Pyramid’ Population. The South African Journal of Industrial Engineering, 24(3), 190–204. https://doi.org/10.7166/24-3-633

Issue

Vol. 24 No. 3 (2013)

Section

Case Studies

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