This project explores how SKF can make business at the “base of the pyramid” (BoP) and contribute to the development of rural markets, improved local livelihoods, and poverty reduction. This is done by better understanding market formation around rural centers, with the societal goal of contributing to development of rural markets and improved local livelihoods. The project takes a first step studying how SKF knowledge can be used to develop innovative solutions to context specific problems in rural Tanzania. SKF is a global supplier of mechanical solutions and maintenance, with focus on bearing applications.
Since the BoP concept was introduced in an article in Harvard Business Review in 1998 it has received increased attention in research, by NGOs, and the public community. The proposition in BoP is that multinational enterprises can engage in business development with the poor and create mutual values, in contrast to socially supporting activities for purely philantrophic reasons.
The project aims to (1) build a knowledge base for strategic decisions on BoP as an area of SKF development, (2) build capacity within SKF on BoP approaches, and (3) give concrete recommendations on the next step to take if SKF will further develop its BoP-work.