7. Why have multinational corporations not dedicated their attention to the "bottom of the pyramid" markets?
Many multinationals are still ruled by their "dominant logic," which dictates that there cost structure and business models cannot serve those who live on a few dollars per day- that the poor do not have use for products/ services sold in developed countries, that only developed countries are able to afford innovation, and that their need to "streamline" and focus on core businesses makes "fringe" markets or product lines irrelevant or dangerous to their own bottom line.
In sum, with notable exceptions, the global business community seems, at times, to lack the capacity to understand these markets, the frameworks and incentives to shift their attention away from traditional business models, and often the tools to capture opportunities. Too often, multinational corporations develop only a limited awareness of complex ecosystems, thus relegating 'Bottom of the Pyramid' markets to the realm of corporate social responsibility initiatives.