For a company, the choice to cannibalise its own market in an attempt to design products and services for poorer consumers is risky. This is why very few attempt it. The stakes are raised further when this product reaps small margins. But if the company can sell low margin products at high volumes, the rewards can be great.
Vijay Govinderajan, professor at the Harvard Business School shares yet another example of this in practice with Gillette and the razor market in India. This company is extremely forward looking and its fearless attempts to create market opportunities where its competitors fear not, is admirable. This courage will no doubt shape it into a sustainable business making it highly resistant to disruptive innovators. The 6heads highly recommend this blog, to read it follow the link below: