Microfranchising as a Sustainable Mode of Entry in Bottom-of-the Pyramid Markets: A Discussion from the Legitimacy Point of View

We discuss microfranchising as a sustainable mode of entry into bottom of the pyramid (BOP) markets. Microfranchising provides companies with profitable engagement by expanding their markets. At the same time it is a mean for improving the quality of life of the poor through supply of basic necessities and alleviation of poverty. We also introduce the concept of legitimacy as a key factor to entry success. Grounding on the new institutionalism theoretical framework, the different types of legitimacy are exposed and discussed in the light of BOP market characteristics.