Harnessing the BOP Ecosystems of China and India for Competitive Advantage

Abstract

Sustainable development of the base-of-the-pyramid (BOP) is a critical issue in a global society. This study provides an ecosystem framework to develop the BOP segment, particularly in China and India. The BOP segment is the low-income household, mainly residing in rural areas. Traditionally, the BOP segment has been understood as a customer segment. We suggest that the BOP can be suppliers, employees, entrepreneurs, and customers. In other words, a BOP venture exists within an ecosystem and contributes to the ecosystem. This ecosystem includes shareholders, governments, the general public, communities, competitors, non-governmental organizations, special interest groups, employees, supply chain partners, and customers. Specifically, we explain how the BOP can play multiple roles, using the context of the fast-moving consumer goods (FMCG) industry in China and the telecommunications industry in India. To mitigate inequality within nations and enhance the standard of living, governments should also nurture the BOP ecosystem. This framework is applicable in other parts of the world.