Success in the Bottom of the Pyramid Market in Africa

This book presents an empirical investigation of the efforts that multinational pharmaceutical companies take in order to find a business model that allows for a profitable access to the Bottom of the Pyramid (BoP) markets. The Bottom of the Pyramid in Africa is frequently mentioned as an attractive market due to its sheer size. Yet most companies struggle to access it because of the low price level, difficult physical market access and challenges when it comes to payment.

More specifically, the book investigates the following business model-related questions: Do pharmaceutical companies provide products that meet the needs of the BoP? What characterizes the value generation of the company? What revenue model leads to a profitable business, and what role does a network of partners play in the business model?

Findings reveal that there is no 'one-size-fits-all' answer to these questions. Providing continuous availability, affordability at a good quality of goods and services, creating health awareness, as well as localizing business to achieve a level of inclusivenessare essential prerequisites for success. In the last chapter this book provides a business model prototype that accounts for these key success factors for business at the Bottom of the Pyramid and points to further research topics.

Auteur

Prof. Dr Philipp von Carlowitz teaches and researches at the ESB Business School of Reutlingen University. Previously he worked in various strategy functions at BASF SE and Siemens AG. His research in Strategic and International Management is applied, seeking theoretically and conceptually based practical insights that can help companies and institutions to be successful. His main field of research is business in Sub-Saharan Africa. He has published in this field on topics such as distribution challenges in Africa, entrepreneurship in Africa, and doing business in Africa. He has conducted studies on business in Africa that were published for various government institutions such as the German Federal Ministry for Economic Cooperation and Development, Austrian Federal Minister for Digital and Economic Affairs, Austrian Development Agency, and the Austrian Economic Chambers (WKO). He is also an advisor on Africa and general strategic management topics to private companies, for example, Siemens AG, BASF SE, BBraun Melsungen AG. He is a member of the scientific advisory board of the GermanAfrican Business Association (Afrika-Verein der deutschen Wirtschaft) and the International Trade Committee of the Chamber of Commerce Reutlingen.