Wednesday, June 27, 2007

The Fortune at the bottom of the Pyramid

Author: C K Prahlad

Publisher: The Wharton Press

A real Paradigm Shift about, what Market Is? Shows you how the Poor People, People at the Bottom Of the Pyramid (BOP), who were earlier neglected by the Big Corporate, are now considering them for future growth. It makes you believe, with practical case studies, how you can generate demand with sustainable profits by tapping into BOP. It’s no Philanthropy serving the BOP, its serious Business now and future growth will come from those sections only.
The BOP market is much more challenging and demanding than the high end markets, since the adversities there are much more. Companies have to clearly understand BOP requirements and bridge all the gaps between them by innovation. This could be by micro financing, improving distribution, cutting overheads, Introduction of low volume packs, generating awareness. Author shows how the solutions to BOP markets can be scaleable across geographies and thus generates sustainable markets.Author backs up his claims with proof of success, through real time case studies, and that’s the book's strongest point. Though the other day I had a talk with one of the ITC guy according to him e-choupal is still not in profits till now and ITC is not bullish on it, but otherwise claimed by the author. But this doesn’t affects, since the logical coherence shown by the author makes anybody believe it is possible.


Prabal Aggarwal said...

hi Rohit
Its a good review. I tried to read this book twice, but due to time constraints always had to leave in between. You know this concept started the revolution of 'Social Entrepreneurship'. Organisations like SIFE are quite active in it. And people are making money out of it. Also i would like tell that the whole thing started with one paper Can be accessed thru this link.I have personally met CK Prahlad around 6 months back. I was really surprised to know that he is easily approachable. Lot of students are proffessionals are working with him around the world. And, I think if anybody of us is interested can approach and discuss with him easily. Well, Rohit it was ur first review. Its a good start. Keep Posting :)

ArUn ShArMa said...

Hi Rohit, a nicely written review of the book. Though Prahalad has claimed to present a totally un-orthodox view of the BOP, I have my own conservations on the issue. Though I, like every responsible citizen, wants the down-trodden sectors to rise, but it cannot be achieved only by thinking about that segment as a potential market. The loss-making ITC e-choupal is just another example. Technology cannot reach the North Eastern states so easily or the Siberian desert so easily as it can in Mumbai or Delhi, because of the lack of a critical mass. I've written an article on the same on my blog, "Opportunity at the Bottom of the Pyramid". Please read it and tell about your views on the same.