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Operations Strategy at the Base of the Pyramid: Consumer Education and Reverse Logistics in a Durable Goods Supply Chain

18 Apr 2018 -17:00 - 18:30

We model and analyze the value of different operations strategies for a social enterprise that distributes durable life-improving technologies to low-income consumers in the Base of the Pyramid (BOP). This distributor considers two strategies: (i) improved consumer education and (ii) improved reverse logistics. We prove that (ii) is always beneficial for the distributor, while (i) may be detrimental. Moreover, we show that this effect is weakened (strengthened) if the consumers’ financial distress is high (low) and the distributor highly values product adoptions relative to profits. We use this framework to contrast the value of strategies (i) and (ii) in the BOP for non-profit organizations that primarily value adoption of life-improving products, social enterprises that value both profit and adoption, and for-profit businesses that primarily value profit. We compare these strategies with those in high-income markets where consumers do not suffer extreme financial distress.

Details

Date:
18 Apr 2018
Time:
17:00 - 18:30
Event Category:
Event Tags:

Venue

Golfclub Olching e.V.,
Feursstraße 89
Olching,82140Germany
Website:
https://www.golfclubolching.de/

Other

Name (Seminar)
Andre Calmon
Link Name (Seminar)
https://www.insead.edu/faculty-research/faculty/andre-calmon
Institution
INSEAD
Room
0514
Host
Stefan Minner
Host Link
https://www.log.wi.tum.de/index.php?id=19
Room Link
https://portal.mytum.de/campus/roomfinder/roomfinder_viewmap?mapid=12&roomid=0514@0505

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