Strategy for the Base of the Pyramid Case

Strategy for the base of the pyramid case

1. What are the more attractive industries for the base of the pyramid?

Answer: the more attractive industries for the base of the Pyramid are many. One of them is the apparel industry, as the author states in the case that Arvin Mills introduced Ruf and Tuf jeans in India, which is now defeats global brands such as Levi's because it targets the consumers at the base of the pyramid, the other industry the cosmetic industry, and the company used as an example in the case is Unilever, which has been successful in focusing on the base of the pyramid. The other industries are the automaker industry, the fast-food industry, and the Personal Computer industry.

2. From the Resource-Based view, what determines firm performance in emerging economies?

Answer: What affects firm performance from the resource-based view are firms-specific capabilities, such as the resources the company possesses, how much resources it has, and economies of scale (the ability to produce good quality products at a lower cost, so the firm can sell them at lower price than its competitors). This way, the firm can target the base of the pyramid, who have substantial collective buying power. In addition, the firm also needs to develop unique and hard to imitate strategies, so that it eliminate the risk of not being successful in the future.

3. From an institution-based view, the crucial differences in formal and informal rules of the game between developed and emerging economies is that institutions matter in the performance of businesses within a country, and institutions are not the same in every country. In developed countries, institutions tend to be more efficient than institutions in developing countries. If institutions in a country are inefficient, businesses will have a negative effect in its performance. Thus firms expanding