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Significant economic and social transformation has brought vast growth opportunities for multinational corporations (MNCs), in China, India and Latin America which opened their markets for foreign investments. Measures are being put in place by MNCs to ensure that the customers are provided with the required satisfactions.
Standard bank of South Africa launched a low cost volume driven e-banking for business to grow revenue and provide services to the poor. Customers have ATM cards for bank transactions and are charged a small fee. Four consumer tiers exist. They include; Tier 1 which is composed of middle and upper class in developing countries. Tiers 2 and 3 are for poor customers in developed countries they are targets for MNCs past emerging market strategies. The tier 4 members are at the bottom of the pyramids there market is meant for technological innovation. Product innovation of Tier 4 re-shapes the way those in tier 1 live. Tier 4 provides market pull for disruptive technologies that replace unsustainable technologies and advanced fortunes of MNCs’.
Improving access for tier 4 helps the members who are economically and physically isolated. Those with better communication links are essential for the development of bottom pyramid. Few MNCs have designed their distribution systems to cater for the needs of poor rural customers. MNCs play a major role in narrowing the gap between the poor and the rich. Consumers in tier 1 have disposable income and space to buy in bulk. They shop less frequently as compared to tier 4 consumers, who strap for cash with limited space and shop daily
MNCs transfer knowledge from one market to another. They are meant to develop tier 4 as they transfer innovations up to tier 1.Tier 4 is a testing ground for sustainable living. MNCs have formed alliances to break into new markets as they gain insight in developing the countries’ culture and local knowledge.
There is unequal distribution of resources which makes the poor not to participate in the global market. MNCs tied to Tier1 capital intensity and labor productivity increase employment opportunities. It is time for MNCs to look at globalization strategies in a new perspective of inclusive capitalism. MNCs must work together with NGOs and government to build a commercial infrastructure for the bottom pyramid.