
Base of the Pyramid (BoP) strategy has a few key tenets, one of which is the power of aggregated demand. Those living at the base of the economic pyramid may have little buying power on their own, but when they are pooled together, their consolidated demand amounts to a
viable market.
Companies are increasingly aware of and planning around this aggregated demand approach, as we have seen through such examples as the William J. Clinton Foundation's
ability to bring down the prices of AIDS drugs through a guaranteed high volume of sales.
That said, there is a need for not only existing products and services, but even more so for innovation at the BoP – so what about aggregating demand in those cases? How do you assess the ability and willingness of the poor to pay for products and services that do not already exist, and how do you convince companies to take a risk on such a vast and fragmented market?
(This post continues past the break; click "Read More" to continue)
On Market Creation at the Base of the Pyramid: It Isn't Easy
On Taking BoP Strategies To Scale Pt. 3: World-Class Healthcare for the World’s Poor
On Drishtee: Rural Health Franchising
On Reviewing a New BoP Critique Published in Innovations Journal
On Connecting Base of the Pyramid Producers to Markets