Bottom of the Pyramid Proposal

1333 WordsJul 10, 20126 Pages
Sean M. Hart GBUS 496 Individual BOP Proposal This paper will evaluate the potential of “bottom of the pyramid” opportunities for a multi-national electric generation and distribution company. Initially, the basic elements of strategy needed for serving this market will be examined. Next, the AAA factors will be evaluated to determine if there are advantages to be obtained by globalizing the proposal. Lastly, cultural differences that may affect the business will be examined. Company Overview PPL Corporation began in1920 when eight utilities serving central and eastern Pennsylvania merged into a single entity called Pennsylvania Power & Light Co., headquartered in Allentown, Pa. Today, PPL controls or owns about 19,000…show more content…
Increased electric use could organically increase to a level that would justify the expense of expanding distributed power to these regions. However, the likelihood of this growth occurring at a rate that justifies the capital expenditure necessary for distributed power is minimal. Instead, PPL could stage this expansion in a way to correspond with the global markets’ continued desire to find ever-cheaper labor in rural markets. When a manufacturing facility is constructed in a rural market, PPL could mandate, as a condition of it supplying power to the facility, that the manufacturer also provide for construction of distributed power facilities in the surrounding villages. AAA Factors There is no real immediate aggregation potential of this proposal in terms of economies of scale. This is because each individual will be their own, self-contained source of generation, distribution and consumption of power. If aggregation is to occur, it will happen much later when distributed power is extended to these regions,. Aside from many in the BOP residing in sunny climates, the main arbitrage advantage is that solar is the only practical way to provide power to many in this market and should therefore receive substantial government subsidies. There seem to be no adaptation advantages associated with this
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