The Rocks at the Bottom of the Pyramid

At the risk of talking too much about the drug trade today, it's worth calling attention to an excellent piece published by Time that's based on an interview with Honduran drug czar Julian Aristides Gonzalez. Gonzalez was killed last week after he dropped his daughter off at school in Tegucigalpa.

One of the interesting nuggets Gonzalez mentions in the interview is the fact that Mexican cartels are distributing increasing amounts of crack in Honduras via street dealers connected to the MS-13 gang.

Narcos are known for their business acumen (they should probably teach classes on supply chain management), and this strategy struck me as something right out of the pages of new business texts on how to effectively engage consumers at the "Base of the Pyramid." The idea of leveraging the know-how of local entrepreneurs and producing products that are accessible for poor consumers is gathering attention at major multinationals. The strategy of creating demand by localizing distribution has been a major element in the rise of Joaquin "El Chapo" Guzman.

Goes to show that in every market - now matter how sinister - the innovators rise to the top.

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Online Sources: TIME, BBC, Wall Street Journal, Palgrave Journals