The Quest For The Fortune At The Bottom Of The Pyramid: Potential And Challenges

Words: 9069
Pages: 37
Open Document
The quest for the fortune at the bottom of the pyramid: potential and challenges
Dennis A. Pitta
The University of Baltimore, Baltimore, Maryland, USA, and

Rodrigo Guesalaga and Pablo Marshall
´
Pontificia Universidad Catolica de Chile, Santiago, Chile
Abstract
Purpose – The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low-income consumers.
Design/methodology/approach – The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.
Findings – There is no agreement in the literature about the potential benefits of the BOP approach for both private companies and …show more content…
Companies can use standard market segmentation and product differentiation to satisfy these tiers.
Dealing with these customers requires professionalism, but the normal market research processes, product development, channels of distribution, promotion, and credit functions should result in success. Thus, Zeithaml and her coauthors showed companies how to use their tried and trusted marketing approaches to maximize effectiveness and profitability. The key is to serve those customers most likely to generate profits instead of losses. The justification is clear: companies have limited resources and should concentrate their efforts where the returns will be the highest. They demonstrated the value at the top of the pyramid (TOP) and shared strategies for serving those customers while discouraging or even “firing” the lower, money-losing tiers.
For profit seeking companies, the customer pyramid approach is appropriate and allows them the best chances to survive in typically competitive markets.

Not surprisingly, the “top of the pyramid” (TOP) approach is at the heart of Western business practice. Traditionally, businesses require a set of four conditions to operate successfully in a market segment. The segment must be identifiable, measurable, substantial, and accessible. In
Western economies, business and communication infrastructures are developed sufficiently to
Show More

Related Documents: The Quest For The Fortune At The Bottom Of The Pyramid: Potential And Challenges

Bottom of the pyramid Essay

Assignment One Deadline: 22nd Nov 2013 (11pm) Word count: 2187 In economics, wealth and income belonging to each country is commonly portrayed in the form of a pyramid. Countries placed at the top of the pyramid are amongst the most affluent and wealthiest with innumerable opportunities, whilst at the bottom of the pyramid (BoP) lies the largest socio-economic group consisting of 4 billion people who make ends meet on $2 per day. The BOP strategy, first discussed by Professor Prahalad (1998)…

Words 2635 - Pages 11

The Fortune At The Bottom Of The Pyramid

In C.K. Prahalad’s book, “The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits” he discusses the plethora of opportunities out there by catering to the BOP market. Additionally, he talks about how this would work and the benefits to all stakeholders involved. This was quite an interesting read as it allowed to me to see this issue from a different perspective and altered my views on this subject. The Bottom of the Pyramid, or BOP market represents the 4 billion of the world’s…

Words 1996 - Pages 8

The Fortune at the bottom on the pyramid Essay

The Fortune at the Bottom on the Pyramid (Prahalad and Hart) Question: Can focusing your growth strategy at the bottom of the world’s economic pyramid provide financial growth, drive innovation and an opportunity for the poor to better themselves? MNC’s (Multinational Corporations) have primarily focused growth, innovation, marketing and resources at the top of Economic Pyramid. The top of the pyramid represents 100M consumers comprised of upper and middle income that have >$20K in annual income…

Words 1369 - Pages 6

Psychological Needs Essay

are met. This system is based on a pyramid, “the lower levels of the pyramid before they can successfully be motivated to tackle the next levels. The lowest four levels represent deficiency needs, and the upper three levels represent growth needs” (Martin & Joomis, 2007, Pg. 72-75). Maslow's hierarchy of needs can be seen most in the shape of a pyramid. Whereas the pyramid has become the average way to represent the hierarchy, Maslow himself never used a pyramid to describe these levels in any of…

Words 830 - Pages 4

Essay on How Did Sohan Lal Effectively Manage Village Affairs

reparation of the JCB machine to renovate the pond and to finally give a chance to all villagers to have access to clean water. 4. Carry out a base-of-the-pyramid competency analysis to suggest the competencies that were reflected through Sohan Lal’s way of approaching issues and making decisions in the Indian context. The base-of-the-pyramid model introduced by Prahalad proposes the idea that: “The poor present a vast untapped business opportunity, and if companies serve the poor, they can help…

Words 1281 - Pages 6

Maslow's hierarchy of Needs Essay

represented by a pyramid. In order for a person to move up the pyramid, he or she has to fulfill the lower needs first. This pyramid would show the basic primary needs, such as food, water, sleep, and sex at the very bottom. Directly above the primary needs would be the need for safety and security. Above the safety needs would be the need to have love and affection and to belong. The next level is self-esteem, or "the need to develop a sense of self worth." At the very top of the pyramid is self actualization…

Words 338 - Pages 2

Pyramid of Giza Essay

Pyramid’s Construction: The construction of the Great Pyramid of Giza has long been debated. Most theories of the Great Pyramid’s construction include using ramps and pulley mechanisms in order to move such massive stones, but exactly how has remained a mystery. There is a theory on how the Egyptians attained the large workforce needed for the construction of the Great Pyramid. Egyptologists Mark Lehner and Zahi Hawass believe that the Great Pyramid was built by a willing labor force as opposed to…

Words 661 - Pages 3

Paradox of Affluence Essay

that we can’t trust people to rate their own happiness- that people do in fact get happier as they get richer. Maslow’s hierarchy of needs is most often displayed as a pyramid. The lowest levels of the pyramid are made up of the most basic needs, while the more complex needs are located at the top of the pyramid. The bottom of the pyramid are the basic physical requirements including the need for food, water, sleep and warmth. Once the lower level needs have been met, people can move on to the next level…

Words 398 - Pages 2

Csr: Corporate Social Responsibility Essay

the facility is located. The Pyramid model Archie B. Carroll theorized represents the levels of responsibility that a corporation needs to meet to be successful (Kreitner & Kinicki, p. 20). There are four separate layers to Carroll’s corporate social responsibility pyramid. His theory is that each level needs to be met successfully in order for the next level to be achieved. Whole Foods values seem to address and excel at each level of the pyramid. The first or bottom layer is Economic Responsibility…

Words 342 - Pages 2

Egypt Notes Essay

enemies in the bottom register. LUXURY ITEM Old Kingdom- Old Kingdom was the first to have Megalithic architecture. Imhotep (architect)- Funerary complex of King Zoser (Djoser), Saqqara ca 2500 BCE (Step Pyramid) Imhotep- worshiped like a god. 13 false doors and 1 actual door. 5 Mastabas on top of each other Old Kingdom-Pyramids at Giza dates vary; the three main people buried Kahfre, Kufu, Menakaure. Great Pyramid of Kahfre, Giza, ca. 2551-28 BCE (Largest/Oldest tomb) Pyramid of Kufu, Limestone…

Words 577 - Pages 3