Iggyvibal’s Weblog

BOP: A Global Opportunity
Amazon link: http://www.amazon.com/Fortune-Bottom-Pyramid-Eradicating-
Publishing/dp/0131877291/ref=sr_1_1?ie=UTF8&s=books&qid=1238079596&sr=8-1
Quote: “ MNC’s working at the BOP learn rapidly that they have to learn to live with variety of
relationships with a large number of institutions.”
Learning Expectation:
I expect to learn in this chapter what and how BOP became a global opportunity for companies/
multi-national corporations. How can they take advantage of this opportunity, especially today we are
experiencing global economic crises. Does this global opportunity still exists even though we have
economic problems? These are just some questions that I have in mind when I first encounter the title of
this chapter. Hopefully all questions that I have in mind will have answers at the end of this chapter.
Review:
Basically this chapter tackles the global opportunity of BOP markets, according to the author
there are four distinct sources of opportunity namely: (1) BOP markets are large and attractive as standalone
entities, (2) Many local innovations can be leveraged across other BOP markets creating a global
opportunity for local innovations, (3) Some innovations from the BOP markets will find applications in
developed markets, and lastly lessons from the BOP markets can influence the management practices of
global firms. I have to agree with the author, this four sources of opportunity is correct in fact these
sources will lead companies to greater heights if they plan to enter BOP markets. I also believe that in
order to be successful in BOP markets, companies must follow the twelve principles and consider these
four sources.
In addition to that author also mentioned that there are two ways which companies tend to
approach BOP markets. First is the traditional approach which start from the top of the pyramid and their
comfort zone, and lastly the suggested one top of the pyramid to BOP and vice-versa. The first approach
needs modifications which usually fails. Remember that requirements of BOP is different from the
requirements of developed markets that’s why MNC’s fail because they forget to modify their
products/services. In order to succeed in BOP markets they have to offer products/services which can
satisfy their needs and maybe it can add some features so that the consumers from the top of the
pyramid will also benefit from it. With the suggested approach everybody in the pyramid will benefit,
everybody will be happy with their purchases and most importantly on the companies’ side they will earn
more money.
Now these approaches are also key factors to global opportunity in BOP markets, companies will
produce a specific product which can solve problems of BOP markets on a certain region at the same
time will developing it companies also think about global opportunity. For example the micro
encapsulation of iodine to preserve iodine in India reached Africa. That’s the meaning of global
opportunity, developing a product that can enter the global market and at the same time gain market
share. I hope that all companies in the future can adopt this principles so that everybody in this world will
benefit, companies will have more income and consumers will also be happy because they can afford to
buy their needs with high quality.
What I have learned:
I learned that in order to be successful in BOP markets there are additional factors that must be
included. Like the four sources of opportunity and approaches used by companies in developing
products. These things discussed in this chapter can lead companies/ multi-national corporations to
greater heights and can also help them to be the market leader globally.
Integrative Questions:
1. What are the four sources of opportunity?
2. Can this lead to success? Why?
3. What is the traditional approach of MNC’s in dealing with their markets?
4. What is the suggested approach in this chapter?
5. Based on the answer on the previous question how can it affect the consumers and companies?