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This website provides a diversity of information about the base of the pyramid; an overview of related publications, interesting real-life cases, videos and more.

What is the Base of the Pyramid?

The “base of the pyramid”, also known as the “bottom of the pyramid” refers to the economical pyramid in which the welfare in the world can be captured. At the top of the pyramid people enjoy prosperity and have many options to acquire income. At the base of the pyramid live 4 billion people in developing countries who live on less than 2 dollars a day.

The expression “Bottom of the pyramid” was already used in 1932 by Franklin D. Roosevelt, in that period, president of the USA. However, since the appearance of the article “the fortune at the bottom of the pyramid” published by C.K. Prahalad and Stuart L. Hart, the expression became more widely known. In this article Prahalad and Hart describe the opportunities that will arise when the wealthiest companies in the word start approaching the poor as underserved consumers and entrepreneurial people instead of victims of poverty. Nowadays, when someone uses the term “base of the pyramid”, he or she usually refers to the ideas as described in this article.

By now, many other scholars studied the opportunities at the base of the pyramid. Suitable strategies for entering this market are a popular subject. You can find articles and books about the subject through the link “publications”.

Unprecedented opportunities for western companies

Although people at the base of the pyramid have very little to spend, they could be a very interesting market for western companies. After all, the sum of these people together results in an enormous population of underserved consumers. Research shows that these people do spend their money on all kind of product, from soap to cellular phones. This products are often dearly bought. Moreover, many of this products are in a people and planet unfriendly way produced. This means that there are lots of opportunities at the base of the pyramid for western companies: creating new sustainable markets, making profits and eradication poverty. All at the same time. However, there are some important starting points:

- Collaboration with non traditional partners like local companies, NGO’s and local governments;
- Involve local communities to obtain insights in the needs and circumstances of the “poor”;
- Increase the capacity of the local communities with respect to their knowledge and their financial situation.

Base of the pyramid in real life

Many multinational companies started projects at the base of the pyramid. For instance the Dutch companies Unilever, DSM and Shell are yet a considerable time active in this area. From the US it are among others SC Johnson, Procter and Gamble and DuPont who launched ventures at the base of the pyramid. You can find real life cases of various organisations by choosing the option “practise” in the submenu.