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Fortune At The Bottom Of Pyramid

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Complete review of the Book / Presentation og the fortune at the bottom of the pyramid.

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Fortune At The Bottom Of Pyramid

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

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