JAN 13, 2009: A TRYST WITH BOP
For the first time I am reading any book of Mr.Prahlad. He is indeed a great thinker. I just couldn't stop myself from writing this blog in between while reading. Let me just brief you about the book. I will keep updating it as i continue reading it.
Did you know that the people who earn less than $2 a day could also be a consumer? Did you know companies could make better profits by concentrating on this segment? How? Why is it that with all our technology, managerial know-how, and investment capacity, we are unable to make even a minor contribution to the problem of pervasive global poverty and disenfranchisement?
This is what C.K.Prahlad has tried to convey and answer in his book, "The Fortune at the Bottom of the Pyramid". The Book provide you with these facts and tell you how the BOP (Bottom of Pyramid) market is important. I just adore this book and his efforts for such an enlightening words. He has wonderfully challenged the readers against their pre-conceived notions about the commercial opportunities in serving the relatively poor nations of the world.
Here in this blog,I have tried to put up some of the best facts and quotes which i have encountered in this book.
"The Power of Dominant Logic"
All of us are prisoners of our own socialization. The lenses through which we perceive the world are colored by our own ideology, experiences, and established management practices. Each one of the groups that is focusing on poverty alleviation—the World Bank, rich countries providing aid, charitable organizations, national governments, and the private sector—is conditioned by its own dominant logic.
"The Dominant Logic of MNCs as It relates to BOP"
Assumption:The poor are not our target customers;they cannot afford our products or services.
Implication: Our cost structure is a given; with our cost structure, we cannot serve the BOP market.
Assumption: The poor do not have use for products sold in developed countries.
Implication: We are committed to a form over functionality. The poor might need sanitation, but can’t afford detergents in formats we offer. Therefore, there is no market in the BOP.
Assumption: Only developed countries appreciate and pay for technological innovations.
Implication:The BOP does not need advanced technology solutions; they will not pay for them. Therefore, the BOP cannot be a source of innovations.
Indeed, rationale is still the same which is persistent in the ideologies of the MNCs. Although efforts are being made and now it is changing. But as you know "Change is the biggest challenge"
Will update it soon ...
For the first time I am reading any book of Mr.Prahlad. He is indeed a great thinker. I just couldn't stop myself from writing this blog in between while reading. Let me just brief you about the book. I will keep updating it as i continue reading it.
Did you know that the people who earn less than $2 a day could also be a consumer? Did you know companies could make better profits by concentrating on this segment? How? Why is it that with all our technology, managerial know-how, and investment capacity, we are unable to make even a minor contribution to the problem of pervasive global poverty and disenfranchisement?
This is what C.K.Prahlad has tried to convey and answer in his book, "The Fortune at the Bottom of the Pyramid". The Book provide you with these facts and tell you how the BOP (Bottom of Pyramid) market is important. I just adore this book and his efforts for such an enlightening words. He has wonderfully challenged the readers against their pre-conceived notions about the commercial opportunities in serving the relatively poor nations of the world.
Here in this blog,I have tried to put up some of the best facts and quotes which i have encountered in this book.
"The Power of Dominant Logic"
All of us are prisoners of our own socialization. The lenses through which we perceive the world are colored by our own ideology, experiences, and established management practices. Each one of the groups that is focusing on poverty alleviation—the World Bank, rich countries providing aid, charitable organizations, national governments, and the private sector—is conditioned by its own dominant logic.
"The Dominant Logic of MNCs as It relates to BOP"
Assumption:The poor are not our target customers;they cannot afford our products or services.
Implication: Our cost structure is a given; with our cost structure, we cannot serve the BOP market.
Assumption: The poor do not have use for products sold in developed countries.
Implication: We are committed to a form over functionality. The poor might need sanitation, but can’t afford detergents in formats we offer. Therefore, there is no market in the BOP.
Assumption: Only developed countries appreciate and pay for technological innovations.
Implication:The BOP does not need advanced technology solutions; they will not pay for them. Therefore, the BOP cannot be a source of innovations.
Indeed, rationale is still the same which is persistent in the ideologies of the MNCs. Although efforts are being made and now it is changing. But as you know "Change is the biggest challenge"
Will update it soon ...
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I need a link in this blog to visit mission po blog
ReplyDeleteHey... good work, all this is also going to help you in your Interviews for MBA colleges. All the best!
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