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Sunday, April 11, 2010

Fortune at the Bottom of the Pyramid..Blue Oceans for MNCs

Posted by Babar Awan

The World Economic Pyramid

Annual Per Capita Income

Tiers

Population in Millions

More Than $20,000

1

75–100

$1,500–$20,000

2&3

500–1,750

Less Than $1,500

4

4,000


The statistics of HBR article shows striking information about the world population and economic capacities. This shows fortune at the bottom of the pyramid. It could be a profitable blue ocean strategy for the MNCs heavily occupied with operational efficiency and increasing market shares. The Tier 4 population has a lot of potential for growth and technological innovation. Although this class will contribute low profit margins per product but it could be accelerated with high volumes. In Pakistani context, Brite Washing detergent and Wheel have grown in this market segments. In India many MNCs are trying to come up with new products for this Tier. Famous example is Nirma detergent product of Hindustan Unilever (Subsidiary of Great Britain Unilever PLC). As technology is filling the information between socio-economic Classes, the bottom of the pyramid could be an effective market to grow and accept new challenges

1 comments:

Anonymous said...

Babar how can we relate the pakistan's detergent example with indian 1,,, can you please explain it to me.