Definition of base of the pyramid

The Base of the Pyramid (BoP) theory suggests that new business opportunities lie in designing and distributing goods and services for poor communities.

The idea is espoused by influential US business school academics CK Prahalad and Stuart Hart, who argue that companies can help eradicate poverty by providing goods and services for the 4bn people who live on less than $2 a day - this group is known as the base of the pyramid.  [1]

Few companies have so far addressed the opportunities in delivering goods to this group, whose purchasing power is $5,000bn a year according to the International Finance Corporation, the private sector arm of the World Bank. [2]

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