Design Strategy for the Bottom of the Pyramid

Abstract

The (Bottom of the Pyramid) BOP was a term referring to the roughly four billion people around the world who live on less than $2/day in PPP terms and remain largely invisible to MNCs as consumers. There are several premises to the BOP theory. The first is that for-profit models are a necessary tool in alleviating poverty and more sustainable than aid. Second, the innovations needed to serve the poor profitably have the potential to make firms more competitive while accelerating economic development. Third, engaging the BOP as consumers demands that companies understand the real needs and aspirations of the poor, build trust and collaborate with them (and often NGOs) as partners. Fourth, many successful innovations for the BOP will have global relevance (Prahalad, BOP).