Base-of-the-pyramid global strategy

Abstract

Global strategies for MNCs should focus on customers in emerging and developing markets instead of customers in developed economies. The “base-of-the-pyramid segment” comprises 4 billion people in the world. To be successful, companies will be required to form unconventional partnerships- with entities ranging from local governments to non-profit organizations - to gain the community’s trust and understand the environmental, infrastructure, and political issues that may affect business. Being able to provide affordable, high-quality products and services in this market segment often means new approaches to marketing- new packaging and pricing structures, and using unfamiliar distribution structures.