ABSTRACT
This chapter explores the opportunities and challenges for multinational corporations (MNCs) provided by base-of-the-pyramid (BoP) markets. It considers 'BoP businesses' as those operating in one or more low-income, emerging markets where the company had considered extending its market reach to lower-income, 'non-traditional' consumers. The chapter focuses on a variety of MNCs' activities in these markets through a series of interviews supplemented by secondary research. An additional primary benefit realised by MNCs was the positive socioeconomic impact they had on the local communities. There are significant opportunities for MNCs at the BoP. As for geographic reach, all of the companies are active in BoP markets throughout the world, while most have headquarters or major offices located in the UK. In comparison to small local BoP businesses, multinationals typically hold competitive advantage in their ability to benefit from economies of scale and scope with their immense assets and access to resources. BoP markets present unique challenges to a company's value chain.
