The fortune at the bottom of the pyramid
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Transcript of The fortune at the bottom of the pyramid
LIJO PAULOSE T
SECTION - A
Briefing about the brain behind it
C.K Prahlad.(IIM-A, Harvard university.)
Prof.@Paul and Ruth McCracken university at the Ross School of Business.
Laureate of padma bhooshan, pravasy bharathiya samman & Lal bhahadur sasthri award for contributions.
Considered as one among the top ten management guru’s of the last century.
Great impact & acceptance from UNDF, IFC & World bank. CEO’S of
top companies accepted it.
For innovation & making new
markets.
Aimed at poverty
alleviation & improvement.
Wealth based distribution of population.
Some cases
$ 200 computer ( impacted not only Indian market but also US.)
SachetsAkash computers.Opportunity is in the air. Identify it.(story of
chapel sellers, a model for finding out creative opportunities.)
MAJOR EFFECTS OF SERVING AT THE BOTTOM
Skepticism in initial stage.Wireless cellular – an impact.Technology to illiterates.Prepaid market.Small industries & new entrepreneurs.Innovation, mobile cash e.g. airtel money.Mobile phone in public health education.E.g. googling and epidemic awareness.
Major obstacles.
Mental hurdles.Attitude change is an imperative.Logistics & infrastructure requirement in
rural areas.A few areas made impact.
$ 200 carSinger sewing machine for $ 100
EKG machine for $ 800
Cultural and communication barriers.
Nothing so. Recognize the market. EG. BRICKS &
Indonesia, turkey, Mexico Etc.( vulnerable markets to grow in the coming decade.)
Substitute 4P’s (product, price, place, promotion) to 4A’s (Awareness, access, affordability, & availability.)
SURPRISES & RESULTS
A surprise even to the think tang behind the idea.
Wide access, ecosystem( network),linking the locals(partnership- not one man show.)
Decentralized production but centralized processing. (supply chain) E.g.. Amul, ITC
Requirements to serve the global customers
Ensure global standard of safety & quality.Know ecosystem,(BE) & Affordability.Be keen to geographical & demographic
factors.(trends in west may not be applicable in south.)
References
http://knowledge.wharton.upenn.edu/article/new-approaches-to-new-markets-how-c-k-prahalads-bottom-of-the-pyramid-strategies-are-paying-off/
http://en.wikipedia.org/wiki/The_Fortune_at_the_Bottom_of_the_Pyramid
THANKS