Reality Check at the Bottom of the Pyramid  

Oleh:

Simanis, Erik

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Harvard Business Review bisa di lihat di link (http://web.b.ebscohost.com/ehost/command/detail?sid=f227f0b4-7315-44a4-a7f7-a7cd8cbad80b%40sessionmgr114&vid=12&hid=105&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&jid=HBR) vol. 90 no. 6 (Jun. 2012), page 120-125.
Topik: Business; Profits; Low-income Consumers

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Perpustakaan Pusat (Semanggi) Nomor Panggil: HH10.44 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Most companies trying to do business with the 4 billion people who make up the world’s poor follow a formula long touted by bottom-of-the-pyramid experts: Offer products at extremely low prices and margins, and hope to generate decent profits by selling enormous quantities of them. This “low price, low margin, high volume” model has held sway for more than a decade, largely on the basis of Hindustan Unilever’s success in selling Wheel brand detergent to low-income consumers in India. However, as an abundance of recent experience shows, the model has a fatal flaw: It inevitably requires an impractical penetration rate of the target market—often 30% or more of all consumers in an area.

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