Base of the Pyramid ventures must find ways to embed themselves in their markets, capturing and leveraging local knowledge and shifts in perception, and to continue evolving their product and service offerings with their customers.
The Ford Model T: Available in any color as long as it's black.
In 1908, Henry Ford introduced the Ford Model T, a "car for the common man", which both created and dominated the modern automobile market for the next 20 years, with more than 15 million units sold in its lifetime. Ford, however, failed to read the changes in perception of the market he had created, and continued to offer only one model to an evolving market looking for upgrades. The upstart General Motors capitalized on this shortcoming and surpassed Ford and the seemingly unbeatable Model T, by providing a ladder of car brands and upgrades. Some argue that Ford never really recovered from that misstep. This trap of not understanding and capturing the future value a venture enables we dubbed the “Model T Trap”*.