Reality Check at the Bottom of the Pyramid. In addition the aspects of the article that could not be used for evaluation are also identified, and the personal evaluation of the usefulness and limitations of the material is made to engage the class further in discussing the material.
The potential use of a business model is a significant consideration or suggestion in the article, because it states how far a firm can go international with its use. Furthermore, it seems that the article tries to imply that the right use of a business model is a potential issue for the assessment of a firm’s move to go in the international market. In particular, the mentioned of the business model, like “low price, low margin, high volume” to generate decent profits is confined further in these issues: price, cost, volume, customer’s spending pattern or capacity, and value for customers. These are potential issues that at some point can help the evaluation of some aspect of an International firm’s move into a foreign market.
For example, it was implied in the article that with higher price, it was assumed that a market with poor customers will not be able to guarantee higher return or decent profit on the part of the firm, because of the people’s inability to spend. Costing at some point will have to affect the actual price of the products. Thus, it is always essential to consider the scale in order to ensure low prices for customers. This is a remarkable suggestion in the article and aside from that a firm must also be able to evaluate the actual capacity or capability of the customers to spend including the pattern of their spending too. For this reason, customer’s spending is an essential issue that must be fully integrated in the firm’s engagement in the international market. Aside from this, the value for customers is another essential consideration.