Understanding business models at the Base-of-Pyramid is critical for future growth: Harvard Business
Tuesday, August 5, 2008
Western markets are saturating and so are the urban markets of BRIC countries. This is forcing companies around the world to understand the lower income consumers living in urban slums and villages.
Future of businesses lies in understanding and executing businesses models at the base-of-pyramid. That’s the message from noted marketing thinker Prof V. Kasturi Rangan, the Malcolm P. McNair Professor of Marketing at the Harvard Business School (HBS) who was the chairman of the Marketing Department (1998-2002), and is now the co-chairman of HBS’s Social Enterprise Initiative. Prof Rangan was delivering a lecture titled ’Business models at the base-of-pyramid’ at New Delhi based Fostiima Business School on July 27. ?
Said Prof Rangan, “The traditional focus of all management thinking and corporate world has been the top 2.5 billion consumers in the world. But what about the rest 4 billion consumers! If companies can create business models that create genuine value for the lower base-of-pyramid, they can be very successful. Infact, this is wave of future.”
During his lecture, Prof Rangan offered several case studies from countries like China, Philipines, Mexico and India where companies have created successful business models by understand the base-of-pyramid consumers.? ?
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