Recently I worked on a whitepaper on "doing business at the bottom of the pyramid" with a team grouped around a discussion platform of the IMD business school. The expression "bottom of the pyramid" was coined by C.K. Prahalad and Stuart Hall and
Recently I worked on a whitepaper on "doing business at the bottom of the pyramid" with a team grouped around a discussion platform of the IMD business school. The expression "bottom of the pyramid" was coined by C.K. Prahalad and Stuart Hall andrefers to the potential market of four billion people in the developing countries living on less than $1,500 per year. They state it as follows:
"The real source of market promise is not the wealthy few in the developing world, or even the emerging middle-income consumers: It is the billions of aspiring poor who are joining the market economy for the first time."
I found the topic quite interesting and welcomed the opportunity to contribute to a whitepaper on the subject. So after some weeks of discussion and sharing of examples on the platform I was wondering how I could best contribute to the topic. I decided that it could be interesting to look at the shared examples through the business model lens, which I explained in an earlier post (what is a business model). In this blog (which I am writing from Yaoundé, Cameroon) I will simply share an interesting business case for each of the nine business model blocks I usually use to describe a business model. What I learned was that doing business at the bottom of the pyramid is really nothing else than real
There are examples of business model innovations in each building block. The most obvious is innovating in the value proposition. When mobile phones appeared in the market they offered a completely different value proposition than fixed line phones. In developing countries where fixed telecom infrastructure is weak and waiting lists for phone lines unbelievably long, mobile services were destined to thrive. In Nigeria MTN, a South African Telco set up a successful venture to tap into the 130 million person market.
For a copy of the full white paper on "Turning Poverty into Opportunity as a Means for Prosperity simply drop me an email.
You may also want to join the discussion group on the topic at: