CASCARRO, Ellaine D.
STRATEGIC MANAGEMENT
CBEA-01-601A MR. RICARDO SALVADOR
Bottom of the Pyramid
Mini Case
What can firm like P&G and Dupont do to be successful in the market?
- To be able to be successful in the market, P&G and Dupont should reassess their
business models, community engagements, and value deliveries. They can build local
ecosystems and employment. Instead of displaying only the local players, they can make
an alliance to local entrepreneurs, other cooperatives or small enterprises. They can also
focus on innovating their business model, they can use subscription models to make
their products more accessible to the customers.
How do they need to change their strategy? How can this be a win-win for the company and
those at the bottom of the pyramid, or can it?
- Since the “low price, low margins high value” strategy has been proven to be
insufficient, there is an obvious reason why the company should need to reassess their
policies and strategies. They must shift from a transactional model to a transformational
model, which can generate value with the communities they are in, not just from the
company itself. It would be a win-win strategy for the company, as the company
expands, the community also benefits, they can gain more access to essential products
and services. as this goes on, the bottom of the pyramid is not a charity case, it is
something that needs a lot of things to consider before going with it. The companies
that succeed here will be those who are willing to redefine their capitalism, those who
treats the post not as a passive recipient, but as an active participant to their global
economic systems.
Should firms be engaging in this strategy at all?
- Yes, but only if it is done carefully, ethically, inclusively, and sustainably. Engaging in
bottom of the pyramid strategy can be very beneficial to the company, but it is not
something that can be a solution to every risk that a business can suffer, and should not
be treated as something that can rely to generate purely for profit.