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Corporate Social Responsibility Case Studies » Bottom of the Pyramid Strategy: Business Schools and Companies Explore to Exploit
For large companies, low-income customers don't even figure in their talk - mainly because they are supposed to have poor purchasing power. But management professor C K Prahalad tried to overturn this. Calling the poor as those at the Bottom of Pyramid (BOP), Prahalad is rosy that though they have low incomes, their combined purchasing power is immense. Few companies have entered this market and made profits. But Professor Aneel Karnani disagrees - large companies hardly have any great opportunity in this segment. So the critics suggest they target the emerging middle class instead; and leave the BOP segment to small, midsize and local companies. Along with companies, B-Schools were also taken in by BOP - offering courses on it and the student craze about it. But how far it will benefit the students remains to be seen.
Pedagogical Objectives

    The case study helps students:

  • Understand the concept of Bottom Of Pyramid (BOP)
  • Assess the challenges and advantages to companies from BOP
  • Analyse the companies' strategies to target BOP
  • Discuss criticism against the BOP theory
  • Discuss whether it is going to be beneficial for the students and new recruits to be trained in BOP Markets?
 
AUTHOR(S) Sushma, Muthu Kumar
INDUSTRY Not Applicable
AVAILABLE AT www.ibscdc.org www.ecch.com
REFERENCE NO. CSR0053  
YEAR OF PUBLICATION 2008
TEACHING NOTE Available
STRUCTURED ASSIGNMENT Available
KEYWORDS
Bottom of the Pyramid (BOP); Professor C K Prahalad; Professor Aneel Karnani; Strategies of Companies for BOP Market; Corporate Social Responsibility Case Study; BOP Courses in Business Schools; Economic Potential of BOP; Skills for BOP Markets; Critical Success factors; Market Entry Strategies; Challenges for MNCs in BOP Markets
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