Serving the Worlds Poor ProfitablyDr. Raghda El Ebrashi Strategic Management Department GUC

Characteristics of the Bottom of the Pyramid Financial Social Opportunities- Stagnation in the economy. - Gap between the rich and

Opportunities- Population increase (China,

India, Brazil, and South Africa). - Innovation vibe and acceptance. - Entrepreneurial spirit (i.e. more trade activities). - Almost 4 billion people untapped!

the poor. - Governmental problems. - Opposition to the global market system. - Poverty (65%).

No need for MNCs to be involved in charitable activitiesMNCs can serve the worlds poor profitably: generate strong revenues, lead to greater operational efficiency, and uncover new sources of innovation.

Wrong Stereotypes? Investment in developing countries is loss of

money. The poor do not have money to consume. The poor are not interested in luxury products. Products sold to the poor are cheap and thus not profitable. The poor are not interested in technology.

Benefits of the BOP Business growth.

Reduced costs (e.g. low cost labor). Inducing innovation.

Charity.. CSR.. NGOs.. Social EnterprisesDifferences?

Companies doing charity/philanthropy (CSR)

Companies doing social marketing

BOP Strategy

NGOs

Social Enterprises

Thank you!