Fortune At The Bottom Of Pyramid
-
Upload
rachitagrawal -
Category
Education
-
view
3.385 -
download
3
Transcript of Fortune At The Bottom Of Pyramid
THE
FORTUNE AT THE
BOTTOM OF THE PYRAMIDERADICATING POVERTY THROUGH PROFITS
C K PRAHALAD
Rachit Agrawal
At The Bottom Of The Pyramid
Consists of 4 billion people
Living on less than $ 2 per day
400 million people in India constitutes the bottom of the pyramid
Purchasing PowerParity in US dollars > $20,000 Tier1
Tiers 2-3
Tier 4
Tier 5
$1,500 - $20,000
$1,500
<$1,500
75 - 100
1,500 – 1,750
4,000
Population in Millions
Exploitation of poor people by Private sector.
Rural population was primarily poor & urban population was relatively rich.
Private sector businesses , especially MNCs logic about BOP.
There is money at BOP.
Access to BOP markets.
The BOP markets are Brand – Conscious.
The BOP market is connected.
BOP consumers accept advanced technology readily
Create the capacity to consume.
The need for new goods and services.
Dignity and choice.
Trust is a Prerequisite
A philosophy for developing products & services for the BOP
- small unit packages
- low margin per unit
- high volume
- high return on capital employed
Price Performance Innovation : Hybrids Scale of Operations Sustainable Development : Eco-Friendly Identifying Functionality : Is the BOP different
from Developed Markets? Process Innovation Deskilling Of Work Education Of Customers Designing for Hostile Infrastructure Interfaces Distribution : Accessing the Customer BOP markets essentially allow us to challenge
the Conventional Wisdom in Delivery of Products and Services
Why a MNC should go for BOP markets?
Developing a unique approach to BOP markets and learning from the experience
Fine-tuning the traditional approach
Micro encapsulation of iodine in salt – in India has found market in Africa & Tanzania.
Launch of Wheel detergent by HLL.
Micro-financing by Grameen Bank in Bangladesh.
Aravinda Eye Care
Capital Intensity
Sustainable Development
Innovations
What type of Ecosystem is Required?
What sort of Ecosystem is required for Developing Countries?
New-Market disruption enables less-skilled people to do more sophisticated things.
Galanz Enterprise
Grameen Telecom
UTStarcom
Some MNC`s have stated to pay more attention to BOP markets.
BOP can be source of innovation
Is it as easy as he makes it sound?
Than
k Yo
u