PYRAMID THEORY OF C.K PRAHLADAN

1. LIJO PAULOSE T
SECTION - A

2. 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.

3. 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.

5. Wealth based distribution of
population.

6. Some cases
 $ 200 computer ( impacted not only Indian market
but also US.)
 Sachets
 Akash computers.
 Opportunity is in the air. Identify it.(story of chapel
sellers, a model for finding out creative
opportunities.)

7. 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.

8. Major obstacles.
 Mental hurdles.
 Attitude change is an imperative.
 Logistics & infrastructure requirement in rural areas.
A few areas made impact.
$ 200 car
Singer sewing machine for $ 100
EKG machine for $ 800

9. 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.)

10. 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

11. 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.)

12. 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