Economic Pyramids
Document Type:Article
Subject Area:Management
Thus, it is acceptable for companies to make profits from the poor. Assuming a company fund a profitable niche in serving the fourth tier of the economic pyramid(the 4 billion people at the bottom), how might such a breakthrough help the firm sell to the top of the economic pyramid? Companies that serve the consumers at the bottom tie of economic pyramid enjoy benefits that can be transferred to the developed markets for higher profits. The companies serving the poor market experience new sources of revenues since the markets present opportunities for low priced and high-quality products. Also, these companies have higher efficiency because the shared access model guarantees companies higher utilization of resources, restructuring of products, outsourcing of the operation to the low-cost labor markets, finance and supply chain that enhance productivity.
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