Africa's New Generation of Innovators

Africa's New Generation of Innovators

Subtitle: 
How some entrepreneurs have succeeded in creating new markets where many global giants have failed
Author: 
Christensen, Clayton M.
Publisher: 
Harvard Business School Press
Date published: 
2017
Record type: 
Responsibility: 
Ojomo, Efosa, jt. author
van Bever, Derek, jt. author
Journal Title: 
Harvard Business Review
Source: 
Harvard Business Review, Vol. 95, No. 1, January-February 2017, pp. 128-136
Abstract: 

With a young, urbanizing population, abundant natural resources, and a growing middle class, Africa seems to have all the ingredients necessary for huge growth. Nevertheless, a number of multinationals have recently left the continent, discouraged by widespread corruption, a lack of infrastructure and ready talent, and an underdeveloped consumer market. Some innovators, however, have succeeded by building franchises to serve poorer consumer segments; tapping the vast opportunity represented by nonconsumption; internalizing risk to build strong, self-sufficient, low-cost enterprises; and integrating operations to avoid corruption. The difference, the authors believe, lies in the choice between "push" and "pull" investment. MNCs seek growth by "pushing" current products onto emerging middle-class consumers. They retain some large portion of their existing cost structure and operating style, and thus set prices that limit market penetration. The winning strategy diverges from this approach in almost every respect. When innovators develop products that people want to "pull" into their lives, they create markets that serve as a foundation for sustainable growth and prosperity.

Language: 

CITATION: Christensen, Clayton M.. Africa's New Generation of Innovators . : Harvard Business School Press , 2017. Harvard Business Review, Vol. 95, No. 1, January-February 2017, pp. 128-136 - Available at: http://library.au.int/africas-new-generation-innovators