Both GE
Remodels Businesses in India and New Business Models in
Emerging Markets discuss where business strategies should start in
emerging markets. That is, they both argue that it is more effective to design
a product and plan based on the existing culture and history of a specific
location as opposed to presenting successful models to other areas and trying
to get them to adapt.
Something
that I found especially interesting is the quote by GE's marketing director,
Ravi Kaushik: "We're targeting the bottom of the pyramid because
that's where the masses exist. I have the technology, and I need to get it
to the lowest market."
Similarly,
in the HBR piece, the authors express a need to reconceive the business model.
They identify researching unmet jobs and building blueprints based on that as
essential tools for implementing a model that evolves with the specific
society’s culture.
Regarding
this week’s topic of the future of social innovation and enterprise, I think
that these authors hit the nail on the head in terms of evaluating the local
market and approaching ventures from the viewpoint of a startup. Initially,
social enterprises cannot expect profits. They need to expect that their
venture will hit a wall in terms of culture, traditions, and ideas of the
region. Only once a plan is made to bypass this barrier can the social venture expect
to see some turnaround- in the form of acceptance before profit margin.
It
makes me think of Plumpy’nut- I’m sure that even though the entrepreneurs were
ready for people to be confused by and potentially against the idea of this
food, they immersed their product in a way to make it fit into the culture of
their market. They thought beyond America’s acceptance and appreciation for the
flavor of peanut butter and designed their strategy such that people would come
to them as opposed to forcing people to feed it to their children. They
established stations that were accessible and that would ensure Plumy’nut could
be further recognized through word of mouth. I believe that the society’s
acceptance of Plumpy’nut came partially from interest, but largely from need.
My question is- how much desperation in a society should an aspiring
entrepreneur accept before becoming more forceful with their business? While
Plumpy’nut’s strategy of attracting the people to come to them was a good one,
if it took too long, should they have eventually changed their product to be
more of a flavor that the society would accept quickly, even if it meant that
it was not as effective? Where is the line drawn between where an organization
should be tweaking its products to be relatable to their target audience and
where an organization should not accept reluctance and continue to enforce what
they think is right?
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