What is BOP (Base (Bottom) of Pyramid) Business ?

In order for proceeding "Drinking water project", BOP business is one of the most important factor. Then, we would like to inform about "What is BOP Business ?".

・Base(Bottom) of Pyramid

Layer of income of less than annual income 3,000 dollars.
72% and about 4billion of world's populations.
The market scale is about 5trillion dollars.

"Make BOP people get plugged-in to economic activity, aim to resolve development challenges"

i.e. enlargement of employment opportunities, improvement of medical/educational services etc.

<< General class of BOP business >>
(1) Take BOP people as "consumer"
(2) Put BOP people in "Value Chain"

(Reference) Suffering population on the planet

Next rising nation --> BRICS + VISTA

(Brazil 0.18 billion people, Russia 0.14 billion people, India 1.03 billion people, China 1.3 billion people)

(Vietnam/Indonesia/South Africa/Turkey/Argentina : total 2.65 billon people)

[ Nature of Japanese enterprise lead to success in BOP business ]

There are 5 success factors in BOP business for Japanese enterprise.

• Success factor 1: Clear corporate philosophy
• Success factor 2: Strong sense of mission
• Success factor 3: Long-term view
• Success factor 4: Hands-on approach
• Success factor 5: Excellent technology/products/service

[ What are 3 forces make BOP business lead to success ? ]

• (1) Capability for technological development
  It is necessary to develop the commodity and service that satisfies both needs and the payment cost. The achievement of an innovation different for the advanced country is requested.
• (2) Knowhow excavation power
  Finding proper ways out enable to work in the field and follow it.
• (3) Network use power
  In order to cover inadequacy and incompleteness on BOP market, taking advantage of local network is indispensable.

[ What kind of strength do Japanese small and medium enterprises have compare to major firms? ]

There are 3 success factors in BOP business for Japanese enterprise.

• Strength 1: Flexibility and Mobility
  Due to they can adapt quickly to new circumstances, be possible to change specifications easily on-site.
• Strength 2: Abilities on-site
  They can make quick decision on-cite.
• Strength 3: Warm Heart
  They have a mind of compassion and mercy which are inherited in Japanese DNA.

[ What are natures required for executives of Japanese small and medium enterprises in order to succeed in BOP business? ]

• Nature 1: Keen sense of mission
• Nature 2: Strong curiosity
• Nature 3: Brass-knuckles activity

[ What are features of BOP business? ]

• Feature 1:
  Not charity project but main business. It must be sustainable in long term as profitable core business.
  --> Setting as core business
• Feature 2:
  Solving social issues on BOP people (poverty reduction/ environmental improvement / improving of lives) by revolutionary, efficiently, and sustainable business approach.
  --> Human resource development
• Feature 3:
  Sharing same values with local people as partner.
  --> Partnership

[ Why did Japanese firms delay? ]

• Reason 1:
  Inadequacy of official supportive measures against BOP business.
• Reason 2:
  Lack a sense of danger/perspective of the world/foresight in managements.
• Reason 3:
  Delaying of awareness against CSR and inexperience on partnerships in Japanese firms.
• Reason 4:
  Failed on operation in performance-based system.