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Regular version of the site

Book chapter

From mission impossible to mission accomplished! Innovative business models strengthening poor distribution channels

Ljubica J., Eileen D.

In this chapter, we dissect a series of case studies of MNCs who developed innovative business models overcoming geographical, infrastructural and social-cultural challenges and exploitingthe opportunity reflected in the social-commercial connectedness of the middle-income customers and the largest and most lucrative retail channel in the LAC emerging market – the traditional one. With our analysis we display how innovators incorporate previously ill-collaborating players, such as financial institutions, technology companies, (none)-governmental and (none)-profitorganizations,in their models producing benefits primarily for the MoPcustomers and retailers as crucial partners.Their models expand company´s value chains to the traditional retailers increasing their productivity gains through the provision of technology and modern retail practices, yielding a powerful impact on them and their communities. They employ and train locals with deep knowledge about the needs and aspirations of local communities, as well as access to rural, lower-income consumersout of reach of modern retailers, contributing tojob creation and MoP member´s income and improved quality of life. Innovative enterprises, thus, master multiple distribution schemes to bring an optimal range of products and services to those communities efficiently achieving distribution and overall business excellence as well as social impact.

 

In book

Cambridge: Cambridge University Press, 2019.