Serving low-income markets: Rethinking Multinational Corporations’ Strategies

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.Multinational corporations, Low-income markets, Bottom of the Pyramid, Business strategy

Serving Low-income Markets: Re-thinking Multinational Corporations' Strategies

Proceedings of the 5th International Ph.D. School on Innovation and Economic Development, Globelics Academy 2008, Tampere, 2nd of June 13th of June, 2008.In recent years a new debate is emerging about market-based approaches to serve low income 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