A Literature Review of Required Adaptations for Successful Implementation of Frugal Innovations in Emerging and Developing Markets

The extant literature often implicitly treats the various business functions as somewhat isolated entities when analyzing the product development process, while in reality the individual activities often overlap and span more than one functional area. Prospective frugal innovators must prepare themselves for unique and unexpected Bottom of the Pyramid (BOP) market conditions. In terms of viewing a company’s entry into BOP markets, managers must also accept new challenges that go with the territory, which may include difficulty in accessing raw material, financial, and production resources. Developed market firms (DMF) tended to develop sophisticated and state-of-the-art products for the developed world where businesses and consumers are affluent and can afford to buy such premium products. DMFs whose aim it is to establish social ventures in emerging markets are best advised to establish strategic relationships with both customers and civil society organisations or governments, with social development players, delivery providers, and local entrepreneurs, and with government-approved non-governmental organisations.