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Business Model Categories for the Base of the Pyramid and Challenges in the South African Market

King, Andreas Henrik; Lynghjem, Terje Slagnes
Master thesis
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URI
http://hdl.handle.net/11250/2403726
Date
2016-09-02
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  • Master Thesis [3748]
Abstract
The purpose of this thesis is to map various categories of business models to reach the Base of

the Pyramid (BOP) customer segment, and to highlight some of the main perceived challenges

in the South African market, with an emphasis on how these are dealt with within the different

business model categories. Applying a business model framework consisting of the four

interrelated elements of target customer, value proposition, delivery and capture, we conducted

a qualitative, multiple case study to aggregate the three business model categories Engaging the

Entrepreneur (EE), Poverty Premium Eradication (PPE) and Multipurpose Product (MPP).

These offer insights as to the role of the BOP, how to create value for this segment and how

value might be captured. Value delivery was found to be independent of the business model

categories. Furthermore, we found that the main perceived challenges were dealt with in similar

manners across the business model categories, and that one means was used to solve several

issues. As the solutions to the challenges were found mainly, but not exclusively, in the value

delivery of the business model framework, it lead us to conclude that the solutions to the

challenges were largely business model category independent.

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