Although the majority of the companies have viewed these challenges as unconquerable, there have been others who have silently followed experimental strategies to develop a unique products and services to the globe’s most needy section. Now social business is emerging to help people come out of poverty. Business can emerge to be a significant driver which can boost change round the world, but the same has to be the correct kind of business which has to be run the correct way. This essay is going to analyze those ways of the businesses who have dared to see things differently and believe that business is the best way to combat poverty, where the business has been the great engine where they have made the profits the enabler, but not the only motive. These social entrepreneurs want to serve the un-served market and treat it as a huge opportunity as a moral duty. We would look at those multinationals who have taken up the challenge of serving the needy and doing it profitably.
This paper will analyze the approach which has been instrumental in the success of the organizations pursuing to serve the poor which is the 4As: Availability, Affordability, Acceptability and Awareness
Availability is defined as the degree to which consumers would be able to procure and use a product or a service. The biggest challenge of serving a BOP market is to be able to ensure the products and services are available. The channel of distribution in the bottom of the pyramid section is non-existent. The job of getting the products to that market is a significant obstacle which has to be overcome. If a company wishes to serve the low income segment of India, the biggest hurdle is the transportation and the unavailability of roads which not only adds cost but also the extended supply chains (Prahalad & Hammond, 2002).Hence, although the BOP market consists of over more than 700 million Indians, shipping the goods and services is not very easy.