Doing More Harm Than Good? Lessons from Failures at the Base of the Pyramid

After the concept of the Base of the Pyramid (BoP) gained momentum, many firms tried to explore markets where the needs of low-income communities could be profitably met. While several such efforts have succeeded, many others have failed to achieve the desired outcomes. However, lessons from those failed initiatives can help firms enhance their competitiveness and design more effective BoP initiatives. Based on the analysis of three failed BoP initiatives that not only led to losses for the firm but also caused immense harm to the well-being of the BoP communities and led to deaths in extreme cases, this paper identifies the most critical reasons for failures and derives insightful lessons from failures. We develop a conceptual model that facilitates a systematic evaluation of BoP initiatives and helps firms serve BoP communities profitably and avoid catastrophic failures. Insights from this study can help advance academic research for BoP initiatives and guide managerial action pursuing the UN Sustainable Development Goals (SDGs).