Journey to the bottom fo the Pyramid

“Poverty knows no such boundaries.” In every part of the continents there is poverty and that is a fact. Various aid agencies and governments had been helping hand and hand to eliminate poverty for more than 50 years. There are companies fighting disease with educational campaigns and innovative products. Economic pyramid shows the distribution of wealth and the capacity of the world to generate income. At the top of the pyramid are the wealthy and at the bottom are the poor. 4 billion people constitute the bottom of the pyramid. These are the people who are the subject matter of this chapter. According to C.K Prahald ( author of Fortune at the bottom of the Pyramid) the most effective approach to help the poor is associating with them. Innovation had created opportunities for the poor by offering them choices and encouraging self-esteem. Some attempts can be seen and the effect of this but its still not enough. What companies can do to help is to help the poor to participate buy letting them have an access to the products and services that are available to the market. Second, to pay attention to what BOP needs, to be able identify problems and offer the best solution. Third, to let the BOP participate with the business process for them to gain more knowledge and have ideas on how things work. There is lot of wrong assumption that has been laid out about the BOP but Prahald answered this and change my perception with his examples.

It is wrong to assume that the BOP’s have no purchasing power and therefore they do not represent a possible market. If we are going to look at the majority of the population which is the BOP which is 4 billion people, we have to think of solutions on how to utilize their wealth

Mohd.Fahad Ifaz
Mohd.Fahad Ifaz
In charge of interventions in the rural sector following a M4P approach

Leave a Reply