Innovating for the Middle of the Pyramid in Emerging Countries

Description

The transformation of emerging markets in recent decades has generated a new, growing, and very large middle class market, also known as the middle of the pyramid. This market segment, which is middle by the standards of emerging markets yet low by the standards of advanced economies, is extremely attractive for firms, but still understood and underserved. This volume presents detailed analyses of exemplary firms that have innovated products, services, and business models to fulfil the needs and desires of these new middle classes. It provides useful insights for managers, consultants, researchers, and students interested in emerging economies, and actionable lessons on how to innovate for a new and expanding market segment.

Alvaro Cuervo-Cazurra is Professor of International Business and Strategy at Northeastern University, AIB Fellow, and co-editor of Global Strategy Journal. He studies the internationalization of firms, particularly emerging market multinationals; capability upgrading, mainly technological capabilities; and governance issues, especially corruption in international business. He received a Ph.D. from MIT and an honorary doctorate from Copenhagen Business School. Miguel A. Montoya is Full Professor and was the Director of the Graduate School at Tecnologico de Monterrey, Mexico. He is country representative at AIB-LAC and a founding member of the Fudan Latin America University Consortium. He has published on international business and economics, particularly emerging market multinationals, trade and investment China-Latin America. He co-edited the book Mexican Multinationals published by Cambridge University Press. He received a Ph.D. from Universitat Autonoma de Barcelona, Spain.

'The cases featured in this book are detailed analyses of exemplary companies that introduced innovations to address some of the most difficult challenges in emerging markets, which were usually tried to be solved by government or nonprofits, resulting in successful business models. Without neglecting the sustainability and profitability that every company must have, managers must ensure that their companies always generate economic, social, and human value.' Juan Carlos Domenzain, Executive president of Promotora Social Mexico, Mexico 'This is an excellent treatise on innovating for the middle-of-the-economic pyramid in emerging economies.' Vijay Govindarajan, Coxe Distinguished Professor, Tuck School of Business, Dartmouth College; and New York Times and Wall Street Journal Best Selling Author of Three Box Solution 'Emerging markets and firms will grow in importance in years to come. This book provides the best analysis of their formidable innovative capabilities in the context of evolving middle classes, human capital formation, and new business models.' Mauro F. Guillen, Zandman Professor of International Management, The Wharton School, University of Pennsylvania 'One of the biggest opportunities of this century is serving the burgeoning middle class in emerging economies. This important book takes a deep dive into the strategies and innovations that have worked in Latin America in healthcare, education, housing, finance, retail, and entertainment, among others. I strongly recommend it for managers, policymakers, and academics interested in the future of emerging markets.' Ravi Ramamurti, University Distinguished Professor and Director, Center for Emerging Markets, Northeastern University 'We need to know more about how to innovate for lower income consumers in emerging markets. This book presents new and important ideas, insights and examples that yield a richer understanding of what is possible and how to achieve success.' Ted London, Clinical Associate Professor of Business Administration, Ross School of Business, University of Michigan