Title: Defining a base of the pyramid strategy

Authors: Nancy E. Landrum

Addresses: Quinlan School of Business and Institute of Environmental Sustainability, Loyola University Chicago, BVM 315, 1032 West Sheridan Road, Chicago, IL 60660, USA

Abstract: Base (or bottom) of the pyramid (BoP) strategies are often erroneously understood as multinational corporations' strategies for competing in emerging economies while trying to tap unserved customers in those markets. In response, this manuscript seeks to inform readers of the necessary inclusion of sustainability as a cornerstone of the BoP strategic approach and to point out the critical differences between international strategies in emerging markets and sustainability-focused base of the pyramid strategies. These two approaches are distinct in terms of goal, or anticipated outcomes and performance measurement, as well as implementation through various components of a company strategy, such as target market, business model, partnerships and alliances, products and services, cost structures, and access and distribution. Through a point-by-point discussion of these differences, this manuscript clarifies the characteristics that define a BoP strategic approach. Armed with this knowledge, corporations and executives can more aptly pursue BoP strategies.

Keywords: base of the pyramid; BoP strategy; bottom of the pyramid; sustainability; international strategies; globalisation; emerging markets; sustainable development.

DOI: 10.1504/IJBEM.2014.065582

International Journal of Business and Emerging Markets, 2014 Vol.6 No.4, pp.286 - 297

Received: 04 Apr 2014
Accepted: 09 Jul 2014
Published online: 08 Nov 2014 *

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