From Mission Impossible to Mission Accomplished!

Abstract

We analyze a series of case studies of MNCs innovative business models, overcoming geographical, infrastructural, and social-cultural challenges to exploit the size of the traditional retail channel in LAC and its social–commercial connectedness with the middle-income customers. We display how innovators incorporate previously ill-collaborating players, (financial institutions, technology companies, (non)-governmental and (non)-profit organizations), in their models producing benefits for the MoP customers and retailers as crucial partners. Their models expand company´s value chains to the traditional retailers increasing their productivity through technology and modern retail practices, yielding a powerful impact on them and their communities. They employ and train locals with knowledge about the needs and aspirations of local communities, access to far-flung rural, lower-income consumers, contributing to job creation and MoP member´s income and improved quality of life. Innovative enterprises master multiple distribution schemes to bring an optimal range of products and services to those communities, efficiently achieving distribution and overall business excellence as well as social impact.

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