This is a proposal for MNCs to enter the Bottom of the Pyramid; Tier 4, the market where people’s annual per capita income is less than $1,500, but the population is 4,000 millions.
Authors pointed that some unreasonable assumption, such as poor market is for government and NGO, has prevented MNCs from Tier 4. But actually, Tier 4 is also area for MNCs and can improve MNCs activity.
As Tier 4 is important for MNC, MNC is important Tier 4, because only MNCs has Resources, Leverages, Bridges, and Transfers. To make use of these advantages, MNCs should build a local base of support, conduct R&D focused on the poor, Form new alliances, increase employment intensity, and reinvest cost structures.
Finally, Tier 4 ‘s market is made by local firm, MNCs, and global partnership.
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