MIA: Profit at the Base of the Pyramid

Lynda M. Applegate; José Antonio  Dávila Castilla; Sarah  Mehta; Aldo  Sesia

Case | HBS Case Collection | June 2017

MIA: Profit at the Base of the Pyramid

by Lynda M. Applegate, José Antonio Dávila Castilla, Sarah Mehta and Aldo Sesia

Abstract

In January 2016, Guillermo Jaime had just returned home to Mexico City after attending a Harvard Business School executive education program. Jaime was the founder and CEO of Mejoramiento Integral Asistido (MIA), a company providing affordable housing to low-income Mexicans living at the base of the pyramid (BOP), defined as those living on less than $10 per day. Since its launch in 2009, MIA had built nearly 25,000 homes—providing safe shelter to more than 100,000 Mexicans—while generating an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of over 8%.
At the executive education program, Jaime had learned that entrepreneurs could build on their unique attributes and capabilities to expand and grow their businesses. Should he continue to expand the services MIA offered to BOP customers? Could he leverage what made MIA unique—offering affordable homes for its BOP customers in Mexico—to fulfill other critical needs at the BOP for water, clean energy, and health care services? Jaime was an expert in housing, but could he translate that expertise to such diverse sectors? If so, how should he begin?

Keywords: base of the pyramid; social capitalism; social entrepreneurship; Housing; Emerging Markets; Social Enterprise; Society; Wealth and Poverty; Social Entrepreneurship; Construction Industry; Mexico;

Language: English

Format: Print

22 pages

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Citation:

Applegate, Lynda M., José Antonio Dávila Castilla, Sarah Mehta, and Aldo Sesia. "MIA: Profit at the Base of the Pyramid." Harvard Business School Case 817-073, June 2017.

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MIA: Profit at the Base of the Pyramid

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