ICT Companies Should Aim for Near-term Growth Markets
The World Resource Institute (WRI) and International Finance Corporation (IFC) took a step this week toward addressing the business community’s biggest concern about “bottom-of-the-pyramid” initiatives – the lack of quantifiable data to assess the market. With their latest report, The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid, WRI/IFC present new market data for doing business with the world’s poor, who represent a market opportunity of $5 trillion annually.
For multinational companies, however, the more immediate opportunity is the 1.5 billion people at the middle of the economic pyramid – those who earn between $3,000 - 20,000 annually and represent a $12 trillion opportunity. Though it is distinct from mature markets and requires a new approach to market research and business planning, this market segment can be captured with smaller adjustments to existing solutions and business models. The value of this market is therefore easier to “sell” internally, and more in line with a company’s core strengths.
ICT Companies with deep understanding of the characteristics of near-term growth markets will see more immediate returns and be better positioned to develop appropriate solutions further down the economic pyramid.
Also in the news this week
- Intel offers solid state flash memory drives – part of the evolution of low-cost, ruggedized laptops for developing countries
- Affordable 3G LG phones to hit world market - low cost, high battery life makes appeal high for emerging market customers
- Ericsson goes deep into emerging markets - GSM base station helps operators reduce costs 30%