BOP Basics
What does “BOP” stand for in business literature?
Bottom/Base of the Pyramid
What does Karnani call the idea of a “fortune at the BOP”?
A mirage
What did Kolk et al. (2014) review in their paper?
A decade of BOP academic articles (2000 - 2009
What is the core strategy Kaplan & Serafeim promote?
Creating inclusive ecosystems for growth
here’s a massive untapped fortune waiting at the BOP.
FLUFF – Karnani argues this is a myth; profit margins are thin and costs are high
Who popularized the BOP concept?
C.K. Prahalad
What does Karnani believe is the real path to poverty reduction?
Viewing the poor as producers, not consumers
Which group was originally expected to lead BOP strategies?
Multinational Enterprises (MNEs)
In what country did a brewery address malnutrition using local crops?
Uganda – Nile Breweries
Most BOP research focuses on India and consumer goods.
FACT – Kolk et al. found heavy concentration in cases from India, esp. Hindustan Lever
What is the income threshold often used to define BOP markets?
< $2/day or <$1,500–2,000/year PPP
Why does Karnani criticize microcredit schemes?
They often trap the poor in debt without increasing real income
According to the review, what role is most commonly assigned to the poor in BOP articles?
Consumers
What type of business model do they oppose as insufficient?
Standalone CSR or charity programs
Inclusive ecosystems require primarily private sector effort.
FLUFF – Kaplan & Serafeim emphasize multisector partnerships with NGOs, donors, governments
What was the original claim of the BOP model?
That businesses can profit while alleviating poverty
According to Karnani, what should governments focus on instead of relying on markets?
Public services like education, health, infrastructure
What did Kolk et al. find lacking in many BOP studies?
Rigorous impact measurement – economic, social, environmental
What kind of partnerships do they emphasize?
Cross-sector: business, NGOs, governments, donors
Most BOP business models involve co-creation with the poor.
FLUFF – Kolk et al. found few examples of true coinvention; most still treat poor as consumers
What kind of products were often used as early BOP examples?
Low-cost sachet goods, Fair & Lovely, microcredit, etc.
What risk does Karnani associate with marketing to the poor?
Exploitation and wasteful consumption
Name one country that dominates case examples in BOP research
India
What term do they use for building long-term inclusive value chains?
Catalytic business models
BOP strategies have successfully scaled by treating the poor as micro-entrepreneurs in global supply chains.
FLUFF – Most BOP initiatives still treat the poor as consumers. When entrepreneurship exists, it’s often low-scale and initiated by the company, not community-driven (Kolk et al., Karnani)