Profits at the bottom of the pyramid

• Autores: Erik Simanis, Duncan Duke
• Localización: Harvard business review, ISSN 0017-8012, Vol. 92, Nº 10, 2014
• Idioma: inglés
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• Resumen

  • The best way for companies to improve the lives of the world’s poorest people--those at the bottom of the pyramid--is to focus first on doing good business, not just on doing good. That’s the contention of the authors, who say that a steady flow of profits from manageable ventures will pave the way for later investments in more-ambitious socially beneficial projects. The authors cite two main challenges in selling profitably to the bottom of the pyramid: changing consumers’ behavior and changing the way products are made and delivered. To help companies see how these challenges affect various business prospects, they have developed an “opportunity map” that classifies opportunities along a spectrum from the least complex and resource-intensive to the most. At the simplest end are targeted marketing opportunities in mature markets. In the middle are opportunities in growth markets: efforts to redesign products, extend distribution channels, or create new ones. At the other end of the spectrum are frontier-market ventures to develop new products, conquer competitors’ markets, expand into greenfield markets, develop new business models, or create altogether new markets. The authors present examples of each type and explain that companies can pursue multiple opportunities simultaneously. If they choose wisely, they can make profits and advance their social missions at the same time