Defining a base of the pyramid strategy

Abstract

Base (or bottom) of the pyramid (BoP) strategies are often erroneously understood as multinational corporations’ strategies for competing in emerging economies while trying to tap unserved customers in those markets. In response, this manuscript seeks to inform readers of the necessary inclusion of sustainability as a cornerstone of the BoP strategic approach and to point out the critical differences between international strategies in emerging markets and sustainability-focused base of the pyramid strategies. These two approaches are distinct in terms of goal, or anticipated outcomes and performance measurement, as well as implementation through various components of a company strategy, such as target market, business model, partnerships and alliances, products and services, cost structures, and access and distribution. Through a point-by-point discussion of these differences, this manuscript clarifies the characteristics that define a BoP strategic approach. Armed with this knowledge, corporations and executives can more aptly pursue BoP strategies.