An Investigation into the base of the pyramid strategies of firms

Abstract

The base of the pyramid (BoP) concept rests on integrating the aspiring poor with the marketplace. It is often seen as a practical solution to mitigate some of the challenges of globalisation. The BoP refers to that section of the population whose income is below a certain threshold level of poverty. According to the Human Development Report 2016, even though global extreme poverty rates have declined by more than two thirds since 1990, income gaps have widened. Data from The World Inequality Report 2018 shows that the global income growth of the bottom 50% of the world population in the period 1980-2016 was 94%, but it still captured only 12% of the total growth. Societies face complex challenges due to lingering deprivations, deepening inequalities, and violent extremism. Solutions require multi-sector collaborations that necessitate contributions from all including governments, aid agencies, nongovernment organisations (NGOs), as well as businesses. Participation by firms in the markets where the BoP populace or their representatives transact would help them fulfil their societal obligations, and introduce innovations that would be beneficial for the firms in the BoP markets as well as its top of the pyramid (ToP) markets.