The Base of the Pyramid Strategy and its Benefits to a Multi-national Firm

Abstract

The report identifies that bottom or the base of the pyramid strategy. There is explanation of the pyramid strategy and how it affects people in the world. It can be used to understand the number of people earning certain amount as their income especially in the developing nations where there is origin of some of the multi-national companies. The report explains more about the business venture at the base of the pyramid and its opportunities in handling poverty in the developing nations and focuses on making profit. It explains how the multinational enterprises base their pyramid market on their income level. The content can be used to identify the MNCs in the developed worlds and their position in the pyramid since the produced goods are aimed at meeting the interests of people in the developed markets and their concern is meeting the basic needs. It explains how MNCs employ the Bop strategy in the business and explores how some companies fail to understand the needs of the customers in the lower market. There are examples of the companies, such as the passenger car market in India and the global carmakers including Hyundai and Maruti. Another example is Fiat in the Indian market. The report is useful in understanding how companies are accountable to the price-value considerations of Bop market divisions.