Innovation in services for the bottom of the pyramid in the retail sector

Abstract

This study is meant to understand service innovation in the retail sector for costumers at the bottom of the pyramid. Innovations in services were identified and classified from the perspectives of the sector where the company operates, as well as the perspective of the company itself. The methodology used was case study in a retail company that operates in the Northeast region of Brazil. Data were collected through semi structured interviews and direct observation. Data were sorted and later analyzed. Results showed that the company has been implementing marketing and process innovations and that, throughout its 50 years of existence, it has achieved innovation improvement, through incremental and formalizing innovations. Using a Transilience Map showed that new competencies were developed, which resulted in architectural innovations. The study concluded that such innovations may be aligned with the disruptive innovation theory. Keywords: Innovation.Services. Bottom of the Pyramid. Retail.