The Ones That Cater To “Base” Human Needs (Maslow’s Hierarchy of Needs)
I’m sure at one point or another during school or college, most people have learned about Maslow's hierarchy of needs with respect to the human condition. For those that haven’t, here it is :
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I truly believe that the best businesses in the world find how to incorporate the bottom two rungs of the pyramid into their core business strategy, which is why they’re successful. Let’s take a moment to explore further. Here’s some companies that work well towards catering to that base physiological need: Tesla, Nestle, Kellogs, PepsiCo/Coke, Defense Contractors, Beer companies, airlines, etc. These guys are targeting our intrinsic need to be safe, healthy, comfortable and stable. The result? Billions of dollars in revenue.
The next tier, safety, is filled by many other companies such as Oil companies, real estate companies, corporate health plans, insurance companies, etc. These businesses and many others like them that incorporate the second level of needs also do extremely well.
The reality is that there isn’t a business that caters to only one of the items on maslow’s needs chart. It is much more fluid than that. The reason why these companies are successful is because as you move further down the pyramid the needs become more serious for existence, and by catering to them you can provide larger value to your customers. In any business, larger value = larger profits = better business.
Businesses can cater to these needs while being on the for profit or non profit side of the fence. For example, a non-profit may provide clean drinking water at no cost, while Pepsi may provide the same service for a few dollars per bottle. The product is the same while the approach is slightly different.
Businesses that understand and incorporate this principle into their operational & strategic plans usually tend to create long term, profitable ventures that deliver the highest amount of value to the largest group of individuals.