By Valeria Budinich
Two-thirds of the world's population – four billion strong – struggle to survive at the bottom of the economic pyramid, yet they represent a neglected multitrillion-dollar market that is growing steadily in an otherwise turbulent global economy, says University of Michigan Business School Professor C.K. Prahalad.
Some of the world's most savvy multinational corporations are discovering that the poorest of the poor represent the next major frontier for companies that are struggling to maintain rapid growth – a huge and potentially profitable market waiting to be tapped. This issue of Changemakers Journal and the Jan '03 issue present two powerful examples of how businesses create powerful social benefits by engaging with the world's poorest people.
The Cemex and Aurolab cases described here show how business can cultivate underserved markets previously considered impenetrable or unprofitable – thus entering the social arena to make a positive difference in the lives of low-income citizens.
