
By Aditi Ramdorai, Cornelius Herstatt
This e-book makes a speciality of how businesses are innovating in regards to the Bottom-of-the-Pyramid (BOP) − the bottom socio-economic section, and the organizational stipulations they should succeed. The authors use a number of examples of disruptive ideas for this industry, really within the Indian healthcare region. inexpensive, strong point medical institution chains like Aravind Eye Care and Narayana Hrudayalaya have introduced down the price of convinced scientific techniques considerably. The Indian conglomerate Tata workforce and the yankee healthcare big GE Healthcare have additionally constructed cheap items designated on the lowest-income segments in India. The authors current an in-depth research of those businesses and current their insightful effects on disruptive innovation and the ever-challenging BOP market.
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Additional info for Frugal Innovation in Healthcare: How Targeting Low-Income Markets Leads to Disruptive Innovation
Example text
2004). New frontiers in international strategy. Journal of International Business Studies, 35(3), 175–200. Roy, O. (2012). Internet in rural India. , & Montenegro, C. E. (2010). Shadow economies all over the World New Estimates for 162 Countries from 1999 to 2007. The World Bank Development Research Group Poverty and Inequality Team. , & Holtbru¨gge, D. (2012). Market entry of multinational companies in markets at the bottom of the pyramid: A learning perspective. International Business Review, 21(5), 817–830.
Through these women entrepreneurs, HUL has created a reach of over 100,000 villages across the country. HUL has thus found a way to control distribution costs by outsourcing the ‘last mile’ to local entrepreneurs (Prahalad and Hart 2002). Other companies also leverage technology, such as telemedicine to create pathways to reach remote corners. Aravind Eye Care has been a pioneer in telemedicine in India (Rangan and Thulasiraj 2007). Another strategy leveraged by ITC, an Indian conglomerate, is to share the distribution network they have built in rural areas with other players interested in these markets (Prahalad 2004).
III. Companies tend to pursue large markets; however, markets for disruptive innovations are initially much smaller than mainstream markets and cannot provide volumes that make the business interesting for companies (Christensen et al. 2001). 2. Incompatibility with existing value network: Christensen uses the concept of value networks to explain attacker’s advantage in commercializing disruptive innovations (Christensen and Rosenbloom 1995). Value networks are defined as the collection of upstream suppliers, downstream channels to market, and ancillary providers that support a common business model within an industry (Christensen 1997a).
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