Business Finance
Grantham University GE Innovates from The Base of The Pyramid Discussion

Grantham University

Question Description

I’m trying to study for my Business course and I need some help to understand this question.

GE Innovates from the Base of the Pyramid

Most business people would agree that being an innovator can be very valuable but this case suggests that it may be useful to “innovate in the way one innovates,” like General Electric has done with its “reverse innovation” strategy.

Discuss innovation and reverse innovation for large global businesses.

Address the following in your paper:

  • What are the similarities and differences between GE’s traditional innovation and reverse innovation?
  • Why is GE so interested in reverse innovation?
  • What are the main concerns that prevent Western MNEs from aggressively investing in emerging economies? What are the costs if they choose not to focus on emerging economies?
  • Why is a leading US MNE such as GE afraid of emerging multinationals from emerging economies?

The requirements below must be met for your paper to be accepted and graded:

  • Write between 750 – 1250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
  • Use font size 12 and 1” margins.
  • Include cover page and reference page.
  • At least 80% of your paper must be original content/writing.
  • No more than 20% of your content/information may come from references.
  • Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
  • Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

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Final Answer

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Pyramid Innovates
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Similarities and differences between traditional innovation and reverse innovation
General electrics, as most of MNE’s, are used to innovate in rich or first world countries
and later transferred to the emerging countries. This has been described as a traditional manner
of innovation. However, reverse innovation is the opposite. It concerns developing innovations
in the emerging countries before been transferred to the world including the rich countries
(Ostraszewska & Tylec, 2015). But the reverse innovations are first embraced to needs of
emerging countries such as India and China. The greatest difference is in their pricing
(Ostraszewska & Tylec, 2015). This is because when any product is appropriately launched,
introduced in rich countries, there is the creation of a new market with low-cost innovative goods
that are not present in the Western countries market. However, this is largely attributed to the
rapid development of highly populated countries such as India and Chin...

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