Innovation in developing markets has less to do with finding new customers than addressing issues of product acceptability, affordability, availability and awareness.
Companies that develop new strategies to attack competitors and enter new markets often accomplish this by introducing architectural or business-model breakthroughs. They identify gaps in how an industry is organized, go after those gaps and then find ways to turn them into profitable markets. They find new customers (“new whos”), new products or services (“new whats”) or new ways of promoting, producing or distributing them (“new hows”). Although there has been a burst of interest in recent years in how economic growth is unfolding in the developing world, most of the research on strategic innovation is focused on developed markets. However, based on our research, that understand the dynamics of growth at the base of the economic pyramid in emerging markets have significant opportunities to unlock value.