The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits

Description:

The world's most exciting, fastest-growing new market is where you least expect it: at the bottom of the pyramid. The last couple of decades have seen great increases in sales, now multinational corporations are seeing markets with sluggish or no growth. One market that's been overlooked is also the fastest growing market in the world, and it's where you least expect it: at the bottom of the pyramid. Collectively, the world's 5 billion poor have vast untapped buying power. They represent enormous potential for companies who learn how to serve this market by providing the poor with what they need. This creates a win-win situation: not only do corporations tap into a vibrant market, but by treating the poor as consumers they are no longer treated with indignity; they become empowered customers. Corporations who service this market form an economic infrastructure, which creates real jobs for the poor, and finally an end to the vicious cycle of poverty. This book is a 3-part manifesto: passionate argument; detailed case studies from India, Peru, Mexico, Brazil, and Venezuela, and range from salt to soap, banking to cellphones, health to housing; and lastly, a CD with digital videos shot on location, designed to bring these innovations alive. CK Prahalad shows why we can't afford to ignore "Bottom of the Pyramid"(BOP) markets.

Table of Contents:

Preface.

About the Author.

I. THE FORTUNE AT THE BOTTOM OF THE PYRAMID.

1. The Market at the Bottom of the Pyramid.

    The Power of Dominant Logic

    The Nature of the BOP Market

    There Is Money at the BOP

    Access to BOP Markets

    The BOP Markets Are Brand Conscious

    The BOP Market Is Connected

    BOP Consumers Accept Advanced Technology Readily

    The Market Development Imperative

    Create the Capacity to Consume

    The Need for New Goods and Services

    Dignity and Choice

    Trust Is a Prerequisite

    Benefits to the Private Sector

2. Products and Services for the BOP.

    A Philosophy for Developing Products and Services for the BOP

    Twelve Principles of Innovation for BOP Markets

    Making It Happen

    Conclusion

3. BOP: A Global Opportunity?

    Engaging the BOP

    Local Growth Opportunities

    Learning to Grow

    Local Innovations and Global Opportunity

    BOP Solutions for Developed Markets

    Lessons for MNCs from BOP Markets

    Captial Intensity

    Sustainable Development

    Innovations

    The Cost of Managing

    Learning to Live in a Network of Relationships

4. The Ecosystem for Wealth Creation.

    Market-Oriented Ecosystem

    Ecosystems for a Developing Country

    Learning the Sanctity of Contracts

    Reducing Inequities in Contracts

    Building Governance Capabilities Among the Poor

5. Reducing Corruption: Transaction Governance Capacity.

    Are the Poor Poor?

    TGC

    Building TGC

    The Andhra Pradesh e-Governance Story

    eSeva

    Center for Good Governance

    Impediments

    Lessons from the Andhra Pradesh Experiment

    Appendix: List of eSeva Services

6. Development as Social Transformation.

    Development as Social Transformation

    Breaking Down Barriers to Communication

    BOP Consumers Upgrade

    Gaining Access to Knowledge

    Identity for the Individual

    Women Are Critcal for Development

    Evolving Checks and Balances

    The Real Test: From the Pyramid to the Diamond

II. INNOVATIVE PRACTICES AT THE BOTTOM OF THE PYRAMID.

Section I: The Market at the Bottom of the Pyramid.

    Casas Bahia: Fulfilling a Dream

    CEMEX: Innovation in Housing for the Poor

Section II: Known Problems and Known Solutions: What Is the Missing Link?

    The Annapurna Salt Story: Public Health and Private Enterprise

    Selling Health: Hindustan Lever Limited and the Soap Market

Section III: Known Problems and Unique Solutions.

    Jaipur Foot: Challenging Convention

    The Aravind Eye Care System: Delivering the Most Precious Gift

Section IV: Known Problems and Systemwide Reform.

    ICICI Bank: Innovations in Finance

    The ITC e-Choupal Story: Profitable Rural Transformation

    The EID Parry Story On CD

Section V: Scaling Innovations.

    The Voxiva Story

    Innovations in Energy: E+Co's Investment in Tecnosol On CD

Section VI: -Creating Enabling Conditions for the Development of the Private Sector - On CD.

    Citizen Centricity: E-Governance in Andhra Pradesh On CD

    Biography

    Index

III. CD: 35 MINUTES OF VIDEO SUCCESS STORIES FILMED ON LOCATION IN THE BOTTOM OF THE PYRAMID IN INDIA, PERU, MEXICO, BRAZIL, AND VENEZUELA.

    Casas Bahia (3:54)

    CEMEX (3:07)

    Annapurna Salt (4:05)

    Hindustan Lever Limited (4:16)

    Jaipur Foot (4:40)

    Aravind Eye Care (6:08)

    ICICI Bank (4:23)

    ITC e-Choupal (4:08)

    EID Parry (4:12)

    Voxiva (3:33)

    E+Co/Tecnosol (4:34)

    Andhra Pradesh (3:30)

    Interactive practices text in PDF format

    The EID Parry Story

    Innovations in Energy: E+Co's Investment in Tecnosol

    Citizen Centricity: E-Governance in Andhra Pradesh