Enterprise’s Business Model Innovation Oriented To BOP Resources’developed

Troubled with high inflation, high prices and low-income, low-income groups in the bottom of the pyramid (BOP) has aroused great concern for the government and enterprises, improving the income level of them has become a priority for inclusive economic growth and people’s livelihood improvement. Prahalad&Hart suggested change the enterprise’s business logic to fully release the potentiality of the BOP resource. However, the BOP resource’s characteristics determine that it’s difficult for enterprises to change the business logic with a single theory or perspective, while "business model" just can reveal the value activities that the companies engaged in a particular market from the overall and multi-theoretical perspective. However, literatures on elements of BOP resource developed business model, innovative content and innovation performance evaluation have just started; the researches for local companies to exploit domestic BOP resources are even fewer. Therefore, this paper will give a preliminary study about BOP resources developed business model innovation and performance evaluation for local enterprises in China.This article uses both literature research and case analysis method. Firstly, defining the relevant concepts involved, and reviewing the BOP strategic theory of corporate, and BOP business model and its innovative theory. Secondly, on the basis of the existing literatures, proposing five major elements of the BOP resource developed business model, and defining the meaning of the business model innovation from a business perspective. Subsequently, focusing on the innovation of enterprise and business model, the article establishes a "corporate-business model" two-dimensional innovative theoretical analysis model. Then, combining the innovation activities’characteristics, the article establishes a balanced scorecard indicator system to evaluate the performance of the business model innovation. Finally, the article selects H Eucommia Development Co., Ltd. in Jiangxi Province as a typical case, to verify the theoretical and practical experience.The theoretical significances of this research are:Firstly, combining with existing research, the article proposes the constituent elements of the BOP resource developed business model, and defining its innovation concept, also building a two-dimensional innovation analytical model, based on the corporate level and business model level, and establishing balanced scorecard indicators to evaluate the performance of the business model, which expanding and deepening BOP business model innovation research to some extent. Secondly, selecting the local enterprise as a typical case can accumulate material for deepen study on the domestic BOP.The practical significances of this study are:reviewing that enterprises play an important role in driving low-income groups in rural areas out of poverty, and certainly indirectly narrow the urban-rural income gap, as while as supplying strategy and path reference for enterprises to develop their own space and the development of backward regions in the Mid-west.