Determining business models in bottom‐of‐the‐pyramid markets

Purpose – This paper aims to develop a multi‐criteria approach for determining business models in bottom‐of‐the‐pyramid (BOP) markets. Design/methodology/approach – Analytic network process (ANP) was employed to construct a decision‐making model of quantitative and qualitative factors relevant to BOP markets. Alternatives can be evaluated, respectively, and further business implications can be delivered to decision makers through continuous improvement of the model. Findings – ANP is a tool that can address the interdependencies among decision elements and alternatives in the BOP markets. Moreover, it can be employed in structural analysis of the network of relationships among the selection criteria. Practical implications – Decision makers can make more informed decisions by using the proposed approach, which is targeted toward BOP customers. This approach also overcomes the flaws of previous approaches. Social implications – The successful selection of business models for BOP markets can change how multinational companies think about BOP consumers, allowing the poor to be perceived as value‐demanding customers. In addition, if multinational companies create new local business models, the quality of life of the poor could be improved. Originality/value – The consideration of interdependencies among the criteria relevant to the selection of successful business models in BOP markets is a novel conceptual contribution.