Rethinking the BOP: new models for the New Millennium; academic perspective.

Abstract

Base of the Pyramid (BOP) business models, which projected the world's four billion poor as a viable market, captured the imagination of leading companies. However current BOP models are being challenged. They are seen as being unable to meet the real needs of the poor, and privileging large firms, brands and corporations rather than the community. Given this, corporations need to revisit the assumptions underlying BOP models. This involves changing the focus from reworking cost structures and increasing product ownership to increasing asset control and benefit ownership; moving from evaluating financial viability of new initiatives to evaluating ecological and social sustainability.