Opportunity identification at the base of the pyramid

Abstract

The aim of the research is to study the opportunity identification process in the Base of the Pyramid (BOP) markets. The ideas and theories of opportunity identification from the entrepreneurship literature are being applied in the BOP market, which is claimed to be a completely distinct business environment, where standard venture creation practices are not sufficient. The central question of the research is to address how business opportunities can be identified in the BOP markets and whether the process differs from the developed markets. The practical aim is to provide partnering diagnostic companies an understanding of the market conditions in the targeted Indian BOP market and to identify elements of business opportunities for further development. During a four week ethnographic field study, data of contextual and cultural factors as well as of local health care systems were gathered. The empirical data was analyzed by using grounded theorizing and was interpreted into narratives of the cultural, social and physical environment of the market and to identify prospective elements of business opportunities. Finally, the process to identify business opportunities was analyzed and a model of the opportunity identification in the BOP markets was created. The opportunity identification process is influenced by the special characteristics of the BOP markets. A significant part of the opportunity identification in the BOP is the actual gathering of the accurate market information, which is a considerably more demanding assignment than in the developed markets. Effective local partnerships are necessary to overcome cultural and language barriers and to be able to access the required information in order to identify opportunities. The opportunities in the BOP market seem to be frequently based on strengths and existing platforms of the community, while the local cultural and social factors are an important source of opportunity in the BOP markets. There is a high need for diagnostic services in the studied market, where people were found to be willing and able to pay for these services, thus indicating business potential for the diagnostic companies. Community based organizations seem to provide an excellent platform for a diagnostic or other venture in the area.