The Case of a Solar Water Pump
Latin American markets have been subject to growing interest to western firms in the recent years. A rapidly growing middle class, above average growth levels and a favourable competitive situation, led many firms to reconsider their strategy and heavily invest into those markets. An endeavour that proved to be more difficult than expected for many firms.
Being successful in these markets is not done by simple replication of existing business models and strategies. The market logic of Latin American markets lay down other requirements with respect to a firm’s value proposition. This thesis will show that the value a company offers, is perceived very differently depending on a company’s target customer segment and its relation to the environment and country specific context.
The companies need to adapt their business models and market entrance strategies to be able to target the most promising customer segments and therefore gain sustained competitive advantage.