There's a continuous argument among scholars regarding the existence of a fortune at the bottom of the income pyramid. While some scholars assert that there is a lucrative market at the pyramid base, others refute this proposition, claiming that targeting poor people as customers could lead to unethical business practices and further their exploitation.
With the backing of minor cases, this article clarify that there is undeniably a fortune to be made at the foundation of the pyramid however that good fortune can be formed for both conglomerates and underprivileged people if the inhabitants at the bottom of the pyramid is treated as the suppliers, producers, co-owners, and/or employees other than as mere customers.However, in terms of consumers, there is a market for companies at the base of the pyramid through which they could make profits and concurrently help eradicate poverty, largely by lowering the cost construction for poor folks.
In opposite words, the firms that can diminish poverty and supply cost effective functional goods and services to people that are poor have more to gain than those companies that supply more luxury goods and services or offer goods with only aesthetic or emotional value from such individuals. With the help of mini cases, this article explains four measures by preventing adaptability and affordability traps, companies may utilize to make fortunes for themselves in addition to for poor customers.
PUBLICATION DATE: September 11, 2013 PRODUCT #: BH556-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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