Strategic Actions for The Bottom of the Pyramid in the Housing Sector

Abstract

This article aims to analyze the characteristics of the strategic actions adopted in the housing sector in order to assist the population ranked in the Bottom of the Pyramid (BoP) market. Specifically, it aims to describe the key elements of the BoP’s commercial infrastructure and to identify the strategies adopted to attend the housing sector. The strategy used in this research was the multiple case study conducted at three firms: construction company, real state agency and banking correspondent. The evidences showed that the commercial infrastructure of the housing sector in the BoP market has similar aspects to the ones found in the main references about the theme. The strategic actions are concerned to encouraging people from the BoP market to buy their property, and the main ones are the following: risk assessment and simplified credit approval, management consulting, use of the internet and the utilization of public policy. In addition, it was observed that the Government, as it is the main external agent, plays an important part in the viability of the housing sector business in the BoP market. This study’s results advance towards identifying and understanding of the strategies adopted to attend the housing sector.