Question

Digitec Company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make IT available to people in places like rural Africa and rural India. This is known as which of the following types of strategy?
A. Bottom of the pyramid
B. Skimming the barrel
C. Cream of the cro
D. Top of the pea
E. Base price

Answer 1

Answer:

A. Bottom of the pyramid

Explanation:

"Bottom of the pyramid" strategy is applied by a corporate to the economically weaker and poorer sections of the society, aimed at promoting economic development and at the same time earning profits.

The pyramid here represents the population of a country segregated w.r.t wealth. As we move from bottom to top, the wealth possession increases. So bottom of such a pyramid represents the poorest section.  

Th model employed for such a strategy includes, high sales quantity, low profit margin offering products at a low price. Herein, a corporate offers it's products to the weaker sections, at very cheap prices, with little profit margin so as to achieve twin objectives of economic growth and profitability.

The given case corresponds to such a strategy wherein a company decided to offer laptops in foreign markets, with an aim of making it available and affordable for poor people, by offering such products at very low prices. The company has employed "Bottom of the pyramid" strategy.