Overview

Between a well-served top of the socio-economic pyramid and an almost indigent bottom, lies the majority of humanity, accessing goods and services, not through government or civil society, but through markets. Yet this remains largely unstudied. Through 24 cases, module summaries and guest protagonists, this course seeks to fill the gap. Composed of the emerging middle class and low-income sectors, the base of the pyramid encompasses 5.0 of the 7.5 billion people in the world. In most nations, it accounts for the largest aggregate expenditure of the economy, yet continues to be significantly underserved. This makes possible innovative, disruptive models that dramatically expand access while generating commercial returns equal to or greater than conventional businesses. This success has drawn the attention of large multinational corporations, looking at the base of the pyramid for the growth that has become ever more challenging in their saturated, intensely competitive traditional markets.

But why do some businesses at the base of the pyramid succeed while others fail? The course examines the opportunities and the challenges of the base of the pyramid markets and seeks to identify the key factors behind commercial success and failure. How is technology and the digital age changing this space? And when businesses generate strong financial returns, does it come at the expense of social impact --- can business play a significant role in addressing social issues? When is an enterprise generating high social value or destroying it? In the process, the course delves into the intersection of business, government, and civil society.

Cases are drawn from around the world, including some from the developed economies, where 40-50% of lower-income citizens access goods and services differently than those at the top of the pyramid.

Target Audience

This is a General Management course for operating managers, entrepreneurs, investors and consultants who are interested in the opportunities of fulfilling the largely unmet needs of the growing middle class and lower-income segments. In emerging markets, this often represents a majority of people and total spending; in developed economies it comprises the lowest two quintiles of the population. The course focuses on business at the base of the pyramid as a core commercial activity of the enterprise. Accordingly, it is not for those primarily interested in corporate social responsibility or in serving the ~10% lowest-income population of the world that is near indigence and for whom market solutions are less relevant.

Course Evaluation and Grading

50% of the grade will be based on class participation, 10% on an original posting and two responses on the course blog, and 40% on a take-home final exam.

This course is offered in conjunction with Finance. It is also part of a portfolio of courses relevant to Social Enterprise. For a full listing, see the Social Enterprise Initiative website.

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