Cockroach Theory of Organizational Sustainability and Scalability - Detailed Study on Evidence Based on BOP Approach

Abstract

The question of survival and sustenance are at the very foundation of every individual or organization.  There are various factors that are essential for growth and sustenance of companies. There has been many research studies undertaken to gauge the success factors or to breakdown the components and study success in detail. Especially so, it gains even more importance when companies are serving the markets where consumers have very low incomes and have several unmet needs. Companies serving the base of the pyramid markets need relatively unique strategies and value propositions for success. The base of pyramid came into forefront when management thinkers C K Prahalad and Staurt L. Hart, formulated the “Bottom of the Pyramid” theory in a 2002 article about how businesses can help the poor while still able to make a profit. They noted that there was little competition among the millions of the poor, who essentially live in a world of non consumption. Through low prices, new business models and innovative products, and inclusive value creation corporations along with the help of nongovernmental organizations (NGOs) and local governments, could make money and do good for the larger cause by tapping this underserved market. It has been the belief of many that BOP consumers are typically characterized by several unmet needs, it could range from food, sanitation, transport, communication, and connectivity. It is also interesting to note that in several BOP markets where are overlapping needs not necessarily following the need hierarchy.  Information and communication technology businesses have been able to occupy a larger share of the BOP consumer’s wallet than even basic needs such as sanitation or electricity. What then prompts these consumers and how can businesses reach out to these segments in a phased successful manner. This paper develops the concept, postulates, explanations, theoretical model, and business case based proof on Cockroach Theory of Organizational sustainability and scalability by considering BOP business companies performance evidence. The study also discusses the applicability of this theory and its frameworks on companies and their business models focusing on BOP sectors along with the limitations.