Fortune at the Bottom of the Pyramid: A Mirage
Aneel G. Karnani
University of Michigan, Stephen M. Ross School of Business
Ross School of Business Paper No. 1035
California Management Review, Forthcoming
The popular 'bottom of the pyramid' (BOP) proposition argues that large companies can make a fortune by selling to poor people and simultaneously help eradicate poverty. While a few market opportunities do exist, the market at the BOP is generally too small monetarily to be very profitable for most multinationals. At the same time, the private sector can play a key role in poverty alleviation by viewing the poor as producers, and emphasize buying from them, rather than selling to them.
Number of Pages in PDF File: 42
Keywords: Poverty, Bottom of the pyramid, Selling to the poor, social responsibility
JEL Classification: I30, M10
Date posted: July 14, 2006
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