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Serving low-income markets: Rethinking Multinational Corporations’ Strategies

Author

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  • SadreGhazi, Shuan

    (UNU-MERIT)

  • Duysters, Geert

    (UNU-MERIT)

Abstract

In recent years a new debate is emerging about market-based approaches to serve lowincome communities, opportunities in such markets and the role of multinational corporations. This paper aims at providing an overview of low-income markets thereby analyzing challenges that multinational corporations face in addressing such markets. Various examples of low-income market approaches are examined and different firm strategies regarding R&D, production and distribution in such markets have been illustrated and discussed. It is argued why specific strategies, many of them new to multinationals, are to be devised when it comes to serving low-income communities.

Suggested Citation

  • SadreGhazi, Shuan & Duysters, Geert, 2008. "Serving low-income markets: Rethinking Multinational Corporations’ Strategies," MERIT Working Papers 2008-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008024
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    References listed on IDEAS

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    1. Ravi Ramamurti, 2004. "Developing countries and MNEs: extending and enriching the research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 277-283, July.
    2. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521677530, October.
    3. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    4. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521860130, October.
    5. Allen L. Hammond & William J. Kramer & Robert S. Katz & Julia T. Tran & Courtland Walker, 2007. "The Next 4 Billion," Innovations: Technology, Governance, Globalization, MIT Press, vol. 2(1-2), pages 147-158, April.
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    Cited by:

    1. Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).
    2. Ramani, Shyama V. & Thutupalli, Ajay & Medovarski, Tamas & Chattopadhyay, Sutapa & Ravichandran, Veena, 2013. "Women entrepreneurs in the informal economy: Is formalization the only solution for business sustainability?," MERIT Working Papers 2013-018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Multinational corporations; Low-income markets; Bottom of the Pyramid; Business strategy;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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