Sources of BOP Business in Japan
BOP business involves discovering the unique needs of the poor and providing
products and services that satisfy those needs with methods not conceived of in
previously existing markets. Consequently, this business simultaneously boosts
company profits and contributes to poverty reduction and the resolution of the social
issues of the poor. In other words, it is business through which companies and the poor
can grow together. A company pursues its core business to produce profits and
advantages for both the company and the poor society. This is BOP business, which
ultimately aims to transform a poverty pyramid to a wealthy diamond, as Figure 1
shows.
The reason for citing Yakult as a source for BOP business in Japanese companies is
its Yakult Lady System, which the company started in 1963. The course of its growth is
described next. From the late 1970s and into the 80s, many Japanese companies
achieved high quality owing to their substantial technical capabilities and product
development capabilities. While working to capture markets in developed countries,
Yakult Honsha Co., Ltd. turned toward developing countries with its own overseas
strategy based on its founding philosophy.
At that time, the concept of corporate social responsibility, so popular at present, was
lacking, as was the BOP business model. To globally actualize the philosophy, “we
contribute to the health and happiness of people around the world
Sources of BOP Business in JapanBOP business involves discovering the unique needs of the poor and providingproducts and services that satisfy those needs with methods not conceived of inpreviously existing markets. Consequently, this business simultaneously boostscompany profits and contributes to poverty reduction and the resolution of the socialissues of the poor. In other words, it is business through which companies and the poorcan grow together. A company pursues its core business to produce profits andadvantages for both the company and the poor society. This is BOP business, whichultimately aims to transform a poverty pyramid to a wealthy diamond, as Figure 1shows.The reason for citing Yakult as a source for BOP business in Japanese companies isits Yakult Lady System, which the company started in 1963. The course of its growth isdescribed next. From the late 1970s and into the 80s, many Japanese companiesachieved high quality owing to their substantial technical capabilities and productdevelopment capabilities. While working to capture markets in developed countries,Yakult Honsha Co., Ltd. turned toward developing countries with its own overseasstrategy based on its founding philosophy.At that time, the concept of corporate social responsibility, so popular at present, waslacking, as was the BOP business model. To globally actualize the philosophy, “wecontribute to the health and happiness of people around the world
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