A Model of a Product Launch at the Bottom of the Pyramid

Prahalad and Hart advise companies to launch a product innovation on the marketplace in low- and middle-income countries before launching it in high-income countries. The question arises which characteristics of low-, middle-, and high-income countries determine the success of a product innovation. The most important obstacles in high-income countries are strong competition, vested interests and high expectations from consumers. Competition in low- and middle-income countries is low and market size is too large to ignore. Poor living conditions and non-consumption make it easier for a new product to satisfy consumers. Lack of infrastructure can be a benefit.