- Title : Strategies for Overcoming Institutional Voids in BoP Market Entry: Cases in South Asia
- Author : LEE Myungmoo
- Journal : Asia Review
- Publication Date : August, 2022
- Abstract
Four billion low-income people, a majority of the world’s population, constitute the base of the economic pyramid. Asia is still home to two-thirds of the world’s poor and more than 60% of the world’s undernourished population. The BoP market is different from the developed market in which institutions and systems are complete. There are various institutional voids in this market, making it difficult for multinational corporations (MNCs) and Emerging Giants to enter the BoP market. The main contents of this study are as follows. First, we look at the institutional voids that multinationals (Allianz, Danong) and emerging giants (e-Choupal, Healthline) experience when entering the South Asian BoP market. Second, we examine the market entry strategy based on the triple bottom line to overcome the institutional voids faced by the companies. To this end, the institutional voids and how to overcome them are explained based on the expanded BMC (Business Model Canvas) factors. The entry strategy is proposed based on the analyzed results. Third, this paper introduces the role of market intermediaries in overcoming institutional voids based on the results analyzed through case studies. Based on these results, we suggest a strategy for entry into companies that will enter the BoP market in South Asia.
|
