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Bottomof the Pyramid Strategy: Business Schools and Companies Explore to Exploit



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Code : SEP0015

Year :
2008

Industry : Education

Region : Global

Teaching Note: Available

Structured Assignment : Available

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Introduction: Companies have usually targeted the affluent people. Then they switched over to the emerging middle class in developing countries, as they saw huge potential there. However, US-based academicians C.K.Prahalad (Prahalad) and Stuart L. Hart (Hart) believe that they left out an even lucrative segment: the poor. Called ‘Bottom of the Pyramid’, thismarket has a large customer base with amassive combined purchasing power. This segment rewarded various companies like Unilever and Casas Bahia with huge profits. Soon business schools picked on this trend and started offering relevant courses. But, sceptics say that it is a lucrative market only for the small- and mid-sized companies, not for huge firms.


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