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Hindustan Lever at the Base of the Pyramid: Growth for the 21st Century
Core Disciplines: Base of the Pyramid (BoP); BRIC (Brazil, Russia,India, China); Emerging and Developing Economies; Entrepreneurship; International Business; Social Enterprise & Entrepreneurship; Strategic Management
DESCRIPTION: Hindustan Lever Limited, principally owned by Unilever, operates Shakti, a program which aims to extend the reach of HLL’s products to the 742 million rural consumers in 637,000 villages in India. Critical questions the program faces: Will Shakti and the BoP markets it targets deliver to HLL much-needed long term growth and become a key source of a future sustainable competitive advantage? Is the program really making a social impact?
- After discussing this case study, students will be able to:
- Understand why there is increased attention by MNCs (and other market-based ventures) in serving the BoP and discuss the idea of whether there is a “fortune” to be made in serving this market.
- Analyze the effectiveness of business models used by MNCs when establishing a BoP venture.
- Understand the difference in a top-down approach vs. a bottom-up approach in BoP strategies.
- Understand a BoP segment strategy vs. a BoP product strategy.
- Recognize societal implications (positive and negative) of MNC’s BoP venture.
Secondary Tags: Consumer Products; Innovation