Virtus InterPress


Pravina D. Oodith, Sanjana Brijball Parumasur

DOI: 10.22495/cocv11i3c2p4


This paper analysed the viability of Prahalad’s Bottom of the Pyramid (BOP) proposition within the South Africa context as a mechanism to eradicate/minimize poverty by ensuring a joint collaborative effort by government, NGOs, large domestic firms, multinational corporations (MNCs) as well as the poverty stricken citizens themselves. It conceptualized the BOP proposition and, having reviewed statistics on the extent of poverty globally and in South African in particular, confirmed that the BOP is a lucrative market in the South African context. From the paper, it is evident that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of MNCs. It then reviewed Prahalad’s twelve Principles of Innovation and strategically divided these into six differentiation and six low-cost strategies. The paper concludes by articulating creative strategies (based on Prahalad’s 12 principles of innovation) for active participation and competitive advantage at the bottom of the pyramid, which are vividly presented in a model for strategic partners especially multinational corporations (MNCs) to adopt when expanding their scale of operations to incorporate the BOP market.

Keywords: Bottom of the Pyramid, Global Poverty, Poverty in South Africa, Differentiation Strategies, Low-Cost Strategies

How to cite this paper: Oodith, P. D., & Parumasur, S. B. (2014). Being on top of your game at the bottom of the pyramid. Corporate Ownership & Control, 11(3-2), 253-272.

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