Bottom of the pyramid
The big picture
When the spread of purchasing power in the world is visualised as a pyramid (see Figure 69.1), a very small group of people have a lot to spend, and a larger group of people have something to spend. But, according to the United Nations, more than half of the world’s population has a very low annual per capita income. This very large group of people is referred to as being ‘at the bottom of the pyramid’. But there are fortunes to be made in this market, according to C.K. Prahalad: collectively, the world’s poor have vast untapped buying power. They represent enormous potential for companies who learn ...