Bottom of Pyramid

Bottom of the Pyramid: The unexplored market ready to be exploited – vision for the future

The concept “Bottom of the Pyramid” dwells on the unexplored and unexploited, yet absolutely opportunistic market of the poor, or in other words, the 60% population of the world that is below the poverty line. Academicians and entrepreneurs alike, in recent times, have come to believe that this population emerging market in developed and under-developed countries has a very large potential to drive highly profitable businesses.

Traditionally, the larger organizations have been unsure of entering this risky market, one of the reasons being that the existing market had a lot of potential and still hadn’t matured. However, with the present market downturn, organizations have started realizing the true potential of the bottom of the pyramid.  The willingness of big, multinational companies to enter and invest in the world’s poorest markets, by stimulating commerce and development at the bottom of the economic pyramid will help derive profitable businesses. Many innovative companies – entrepreneurial outfits and large, established enterprises alike – are already serving the world’s poor in ways that generate strong revenues, lead to greater operating efficiencies, and uncover new sources of innovation. The bottom of the pyramid provides an untapped potential market, which fundamentally represents new sources of growth for global organizations. And because these markets are in the earliest stages, growth will be extremely rapid.

Concerns and Challenges

The markets at the bottom of the pyramid, however, demand low priced, high quality goods, and there is an equally strong demand for affordable services. In essence, this means, the availability of packaged, simple and ready-to-use services.
The market also creates a need for reduced costs, and a shared access model of business, which results in lower margins. Successful entrepreneurs use a capital efficiency model – getting the highest possible return on capital employed (ROCE). The model utilizes very low capital needs, focused distribution and technology investments, and very large volumes at low margins, leading to very high ROCE businesses. Since the operating costs are substantially low, it helps create great economic value for the shareholders.
The market also needs to provide a streamlined supply chain for reduced costs. Streamlining supply chains often involve replacing assets with information, and eliminating connectivity issues. Adapting the best practices accomplishes both these issues, resulting in higher ROI.

ZIETA’s approach

ZIETA believes in adapting to the ‘bottom of the pyramid’ approach by utilizing an aggressive pricing model, which is apt for the characteristics of the current market trend. ZIETA’s service and pricing model ensures reduced costs, and increased efficiency.  ZIETA’s solutions are global enterprise wide packaged solutions, and come with the industry best practice templates to help adapt and streamline the business processes. Our solution depends on the requirement of the client, we suggest what is best for the client, whether custom application or Prepackaged solution. We provide a complete solution eliminating issues like internal process bottlenecks. Improved ROI and improved process, brings us repeat business.

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