The benefits and costs of globalization sound very straightforward as discussed

Question

The benefits and costs of globalization sound very straightforward as discussed in our textbook. Yet, there are complexities to consider as companies attempt to sell their goods and services in a global economy. (These complexities also apply to NGOs and IGOs that attempt to provide services globally.) Should for-profit businesses attempt to reach only affluent markets, or is there reason for them to pursue customers and clients at the base of the pyramid? Support your answer with real-world example(s); conduct research as needed. (250 words
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Explanation / Answer

Answer: No, for the profit organizations should not only target the affluent markets only but they should also target the customers at the base of the pyramid. For the profit organizations apart from the economical motive also have obligation towards the society. The lower income markets offer low profit margins but the volumes can support the company’s growth. There are a large number of people who fall under the category of bottom of pyramid and hence even if the companies earn fewer profit margins, they are able to earn sufficient revenues because of the volumes. Though this logic does not applies on the luxury items but there are products which are for mass consumption and can be fairly priced. Thus it is not so that the bottom of the pyramid does not offer any potential for the “For the profit” organizations.

It is required that for the profit organizations develop a new lens of inclusive capitalism so that the needs of the deprived people can be taken care of. New mass marketing strategies needs to be developed by the MNC’s in order to offer products for the bottom of the pyramid customers. There are many examples of the MNC’s who have successfully developed strategies for catering to the bottom of the pyramid markets. The Hindustan lever limited which is the subsidiary of Unilever PLC in India has successfully championed the bottom of the pyramid marketing and successfully targeted the rural belt in India which forms nearly 70 percent of the country’s population. Thus there is a good reason for the profit organizations to target the bottom of the pyramid customers.

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