Bottom of the pyramid business

Share via Email Is there really a fortune to be made at the bottom of the pyramid? Its argument was irresistible: Microsoft founder Bill Gates called the book "an intriguing blueprint for how to fight poverty with profitability".

Bottom of the pyramid business

Prahlad, in his book The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. Some well known examples of products that cater to these markets include micro-credit products and selling shampoos in sachets.

I am currently visiting India and below are some interesting observations on the concept that I see actually being applied: Mobile phones The cost of ownership of a SIM card is low. These make the crowds flock to them to get the cards, as is reflected in the picture above.

SIM cards are also sold in businesses of different verticals. A unique example is the launch of a service to send a message by SMS to find out if a cheaper generic drug was available for a prescription. Cars The cheapest car in the market is the Tata Nano.

Barriers to car ownership have come down leading to other problems like traffic. On the flipside, this creates an opportunity for entrepreneurs selling auto accessories and service at repair shops. Social Innovation Drinking water and health are very essential.

Scaling up a business model is challenging

Food This may be my own short term experience, but when I left India over 15 years ago, international fast food giants like KFC and McDonalds were costly and beyond the reach of the common man. Judging by the prices today, they are competing not only in price but also in products by having products that are closer to the market they are serving.

The take away for small business and entrepreneurs globally from these examples should be: Think about how local market opportunities can be capitalized on using this concept. I miss the independent book stores a lot.

What have you observed similar to the bottom of the pyramid concept?A more realistic assessment of the challenges at the bottom of the pyramid can help companies generate the profits that will make socially beneficial businesses sustainable over the long term.

Bottom of the pyramid business

Any business that starts off needing a 30% or higher penetration rate is built on a shaky foundation. At the bottom of the pyramid, it’s a losing proposition. A recent online chat asked how business can best operate in base of the pyramid markets and what could be learnt from the success and failures of those businesses already serving the lowest income.

In economics, the bottom of the pyramid is the billion people who live on less than $ per day. The phrase “Bottom of the Pyramid” is used in particular by people developing new models of doing business that deliberately target the poorest regions.

The bottom of the pyramid, bottom of the wealth pyramid or the bottom of the income pyramid is the largest, but poorest socio-economic group. In global terms, this is the billion people who live on less than $ a day. The Fortune at the Bottom of the Pyramid by C.K.

Prahalad and Stuart L. Hart, Strategy + business, Issue 26, 2. Kota is a quarter loaf of bread that is hollowed out and topped with French fries, optional sauce, choice of meat, a fried egg and finished with a Parmalat cheese slice.

Bottom of the pyramid - Wikipedia