Strategic motivations and choice in subsistence markets

This paper examines the different motivations behind strategic choice in base of the pyramid or subsistence markets. Two strategies are examined through comparative analysis: market extension and strategic intent. Using two commercial bank's micro-lending business strategies in Sri Lanka, a comparative case study suggests that strategic intent is motivated by building capabilities over time that results in successful poverty alleviation, whereas market expansion is motivated by an immediate desire to expand overall sales revenue. This conclusion may help reframe subsistence market or BoP arguments away from such false choices as appropriate size (e.g., multinational corporations versus small and medium size enterprises) toward more useful discussion on understanding why firms participate in subsistence markets and what is the motivation behind their strategic choice. By considering more than just size and scope and studying the motivations behind long-term solutions to poverty alleviation, firm success can be better understood and achieved.     

Differentiation strategies in emerging markets: The case of Latin American agribusinesses

This study furthers the research agenda on Porter's generic strategies by exploring their implementation by firms that suffer from under representation in the literature. It focuses on agribusinesses based in emerging markets that specialize in high value added products. Relying on information collected through interviews, and a survey with 66 agribusinesses based in eight countries of Latin America, it examines the factors that distinguish firms implementing a differentiation strategy (DS). The findings provide interesting insights for scholars and practitioners alike, illustrating the strategic initiatives that DS firms use to ensure they command higher than average prices.     

Clothing for the elderly at home and in nursing homes

Age-related changes and clothing problems of elderly people at home and in nursing homes have been systematically studied in both an objective and a subjective way with medical literature studies, interviews and user studies. There are certain demands which the clothing design must meet in order to fulfil the requirements specified by the functional ability of the ageing individual. The consequences of the age-related changes on the construction of clothing are analysed and some clothing examples described.     

Corporate ownership and control contestability in emerging markets: The case of Colombia

This study examines the structure of voting control and blockholders’ contestability for a sample of 233 non-financial listed firms in Colombia during 1996–2004. Corporate control is characterized by high ownership concentration and blockholder power, which implies low separation ratios between cash flow rights and voting rights. On average the separation ratios for the largest voting block is 0.95, while that for the fourth largest shareholder is 0.75. Corporate control is privately biased when there is direct monitoring of firm management by controlling owners. Regression results show that a more equal distribution of equity among large blockholders has a positive effect on firm value. Contestability matters most when firm shares are liquid and actively traded on the stock market. This finding is reinforced when the probability that the largest block can form a winning coalition decreases and performance variables, such as market to sales ratio and return on equity, are included in the estimating equations as substitutes for firm value. In addition, our estimations provide evidence that diversion of rents (tunneling) is limited by blockholders’ contestability.     

Altruistic nonprofit firms in competitive markets: The case of day-care centers in the United States

Day care for young children is provided in the United States by a wide range of individuals and organizations, both for-profit and nonprofit, public and private. Some children receive direct public subsidies; others do not, but any type of center may, if it wishes, become eligible to accept subsidized children. How can such a heterogeneous industry structure persist? How well has this mixture of organizations and financing arrangements been in responding to the current growth in the labor force participation of mothers? Using cross-section state-by-state data, this paper provides evidence demonstrating that the industry is very responsive to demand conditions (e.g., the level of female labor force participation, the number of children in single-parent families), but that subsidy money is distributed across the nation in a way that bears little relation to the relative needs of the population. Furthermore, interstate differences in regulatory stringency affect relative costs and appear to limit supply where regulations are most restrictive. I also argue that the current mixed industry structure is stable. Many nonprofits provide high-quality services at low prices because they are managed by altruists and receive private donations. Such firms do not, however, take over the market because there are not enough altruistic managers or donors to go around. Instead they ration their supply and those who cannot be served turn to other parts of the market. The marginal producers, however, appear to be for-profits which respond to profitable opportunities by entry and expansion.     

贫困人群医疗救助的若干关键问题

对医疗救助的理论进行了回顾与整理 ,探讨了对贫困人群实施医疗救助的概念与意义 ,讨论了医疗救助中的若干关键问题 ,包括 :医疗救助对象的确定、优先需要的确定、医疗救助中的社会性别问题、服务效果与服务质量问题以及筹资问题     

贫困人群医疗救助的若干关键问题

对医疗救助的理论进行了回顾与整理,探讨了对贫困人群实施医疗救助的概念与意义,讨论了医疗救助中的若干关键问题,包括:医疗救助对象的确定、优先需要的确定、医疗救助中的社会性别问题、服务效果与服务质量问题以及筹资问题.     

The ICT revolution in consumer product markets

New information and communication technology (ICT) makes consumers better informed about available products, product quality and prices, which mitigates problems of asymmetric information. The entry of firms is facilitated, competition and economic efficiency is boosted and the market powers of households increased. Firms are likely to respond by increased product and price differentiation. There will also be considerable changes in the division of tasks between firms and households. But important obstacles to these developments are technological vulnerability, quality problems in the information on the Internet, cognitive limitations of individuals and weaknesses in the product‐delivery infrastructure in connection with Internet trade.     

The role of Capital markets in developing countries

Capital markets in developing countries are under increasing political pressure. What solutions are likely to the conflicts and problems that arise over the need to integrate them into exploiting the resources, and fulfilling the needs, of a developing economy as a whole?     

房地产市场:沸腾出泡沫

2002年的平静,丝毫无法让我们高枕无忧,因为这只是中外双方试探接触的一个,相信真正激烈的较量即将开始。籍此新春,我们特意邀请一些处于改革实践最前沿的专家来分析今年的热点市场及走向。眼光决定财富,我们希望这些对热点市场的真知灼见能助你发现金矿。     

The double-edged sword of legitimacy in base-of-the-pyramid markets

As compared to developed countries, a much higher proportion of entrepreneurs within base-of-the-pyramid (BOP) markets operate unregistered businesses. Prior research has suggested that the primary cause of such informal activity in these settings is the general failure of ‘weak’ institutions to provide sufficient resources to warrant formalization. We attempt to extend such thinking by deconstructing the discrete and inter-related effects of formal business registration on the level of resources obtained by entrepreneurs from financial, labor, and legal institutions within BOP markets. Using a multi-method approach involving 299 entrepreneurs within Guatemala City, our results suggest that being seen as a ‘legitimate’, registered business can actually lead to both increased resource provision and resource appropriation. More specifically, adhering to the norms and rules prescribed by regulatory institutions within weak legal environments can convey positive signals of stability and profitability that both attract the desired attention from formal institutional actors, as well as unwanted attention from criminals.     

Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China

Economic growth and a rising middle class consumer base make emerging markets an attractive prospect for many international businesses. Changing patterns of retail in these countries present opportunities for business expansion that many are keen to capitalize on, but also present challenges for reaching their ambitions. This article examines the growth of the coffee shop industry in China—considering its key dynamics and drivers—in order to address questions about successful retail expansion in emerging markets. We aim to explore how changing consumer cultures have contributed to a rapidly growing industry and what strategies businesses have used to enter the market and maintain growth, as well as considerations for potential retail success in the future.     

The evolution of syndicated loan markets

This paper provides a historical perspective on the development of the global syndicated loan market, where $2.6 trillion worth of funds were raised in 2004. The emergence of the Eurodollar market in the 1960s, the balance of payments problems of non-oil-exporting emerging countries in the 1970s, the Latin American financial crises and the US merger wave of the 1980s, and finally the competitive financial environment and the emergence of the secondary loan market during the 1990s are reviewed. These have been the most influential financial developments that shaped the syndicated loan markets in the last few decades.