Executive Summary Essay Example | Topics and Well Written Essays - 1250 words

Executive Summary - Essay Example This has given rise to an â€Å"imperialistic form of a mindset† where the existing products are sold to the established markets in the global markets. By the maintaining the focus on the affluent consumers and some partner-organizations who participated actively in the formal economy, it implied that much of general consumer capabilities were being taken for granted. Low-income markets also referred to as the base of the economic triangle offers both tremendous opportunities to tap despite the unique challenges. In the recent years entrepreneurial firms from developing markets seem to have noted a loophole in the global market that when capitalized on can aid in the tapping of the untapped sectors of the market. Tapping on the opportunities and challenges at the base of the economic pyramid (Sirkin, Hemerling, & Bhattacharya, 1996, pp73). The opportunities linked with the market at the base of the economic pyramid are gradually becoming significant to both business managers a nd scholars. There is evidently more than meet the sight when considering the consumers having annual purchasing power parity of 1500 dollars or even less (Hymer, 1976, pp27). In fact, any business trying to find its footage in a new environment is bound to face quite a number of challenges. As a business strategy for new global ventures, entrepreneurs have been turning on to partner organizations for resources and expertise they are lacking (Stiglitz 2002, pp67). Just as is the requirement by most governments, it becomes indispensable that the new entrants in the global market have a corporate partner in the host country who will ensure market accessibility in the new economies. Moreover, the entrepreneurial firms that are entering the base of the pyramid strata of market economy have had to expand dramatically the field of potential alliance partners (Sharma & Vredenburg, 1998, pp729). According to the research work conducted, it is evident that the base of pyramid strategies that were successful relied so much on the partners who were non-traditional. Examples of such partners include the community groups, non-profit organizations, local or rather village level governments (Smith 1976, pp92). The strategies that turned out to be quite unsuccessful relied majorly on the traditional partners who included the national governments as well as the well-established local companies. This could be explained by the reasoning that the traditional partners are far removed as regards to the business knowledge of the low-income consumers (Ghoshal & Nohria 1989, pp327). Having a variety of non-corporate partners is also another strategy that has been employed by the entrepreneurial firms venturing into new global markets. These partners provide pertinent information as regards to the targeted customers and the general business environment that can be hardly found in the corporate sector. This process goes as far as the typical focus on the suppliers and customers. As post ulated by Hart and Sharma (2004), the greater the lack of certainty about what sought of knowledge is imperative, the more the importance of radical transaction is increased. This entails the ability to