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

Book Description

The world's most exciting, fastest-growing new market is where you least expect it: at the bottom of the pyramid. Collectively, the world's billions of poor people have immense untapped buying power. They represent an enormous opportunity for companies who learn how to serve them. Not only can it be done, it is being done--very profitably. What's more, companies aren't just making money: by serving these markets, they're helping millions of the world's poorest people escape poverty.

C.K. Prahalad's global bestseller The Fortune at the Bottom of the Pyramid, now available in paperback, shows why you can't afford to ignore "Bottom of the Pyramid" (BOP) markets. Now available in paperback, it offers a blueprint for driving the radical innovation you'll need to profit in emerging markets--and using those innovations to become more competitive everywhere. This new paperback edition includes eleven concise, fast-paced success stories from India, Peru, Mexico, Brazil, and Venezuela--ranging from salt to soap, banking to cellphones, healthcare to housing. These stories are backed by more detailed case studies and 10 hours of digital videos on whartonsp.com. Simply put, this book is about making a revolution: building profitable "bottom of the pyramid" markets, reducing poverty, and creating an inclusive capitalism that works for everyone.

Preface  xi

About the Author  xix

Part I: The Fortune at the Bottom of the Pyramid  1

Chapter 1: The Market at the Bottom of the Pyramid  3

Chapter 2: Products and Services for the BOP  23

Chapter 3: BOP: A Global Opportunity?  47

Chapter 4: The Ecosystem for Wealth Creation  63

Chapter 5: Reducing Corruption: Transaction Governance Capacity  77

Chapter 6: Development as Social Transformation  99

Part II: Business Success Stories from the Bottom of the Pyramid  113

Financing the Poor  115

Aravind Eye Care—The Most Precious Gift  131

Energy for Everyone  137

Agricultural Advances for the Poor—The EID Parry Story  149

Retail for the Poor  159

Information Technology to the Poor  169

The Jaipur Foot Story  187

Health Alerts for All  191

Transparent Government  201

The Annapurna Salt Story  213

Homes for the Poor—The CEMEX Story  221

From Hand to Mouth—The HHL Soap Story  235

Part III: On the Web at Whartonsp.com

Video Success Stories

            Casas Bahia

            CEMEX

            Annapurna Salt

            Hindustan Lever

            Jaipur Foot

            Aravind Eye Care

            ICICI Bank

            ITC e-Choupal

            EID Parry

            Voxiva

            E+Co/Tecnosol

            Andhra Pradesh

Full Success Case Stories in pdf format

            The Market at the Bottom of the Pyramid

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

            Known Problems and Unique Solutions

            Known Problems and Systemwide Reform

            Scaling Innovations

            Creating Enabling Conditions for the Development of the Private Sector

            The EID Parry Story

Biographies of the Researchers/Writers of the Success Case Stories from The Fortune at the Bottom of the Pyramid  247

About the Video Success Stories  255

Index  257

Table of Contents

  1. Copyright
  2. Praise for The Fortune at the Bottom of the Pyramid
  3. Preface
  4. About the Author
  5. I. The Fortune at the Bottom of the Pyramid
    1. 1. The Market at the Bottom of the Pyramid
      1. The Power of Dominant Logic
      2. The Nature of the BOP Market
        1. There Is Money at the BOP
        2. Access to BOP Markets
        3. The BOP Markets Are Brand-Conscious
        4. The BOP Market Is Connected
        5. BOP Consumers Accept Advanced Technology Readily
      3. The Market Development Imperative
        1. Create the Capacity to Consume
        2. The Need for New Goods and Services
        3. Dignity and Choice
        4. Trust Is a Prerequisite
      4. Benefits to the Private Sector
      5. Endnotes
    2. 2. Products and Services for the BOP
      1. A Philosophy for Developing Products and Services for the BOP
      2. Twelve Principles of Innovation for BOP Markets
      3. Making It Happen
        1. 1. Price Performance
        2. 2. Innovation: Hybrids
        3. 3. Scale of Operations
        4. 4. Sustainable Development: Eco-Friendly
        5. 5. Identifying Functionality: Is the BOP Different from Developed Markets?
        6. 6. Process Innovation
        7. 7. Deskilling of Work
        8. 8. Education of Customers
        9. 9. Designing for Hostile Infrastructure
        10. 10. Interfaces
        11. 11. Distribution: Accessing the Customer
        12. 12. BOP Markets Essentially Allow Us to Challenge the Conventional Wisdom in Delivery of Products and Services
      4. Conclusion
      5. Endnotes
    3. 3. BOP: A Global Opportunity
      1. Engaging the BOP
      2. Local Growth Opportunities
        1. Learning to Grow
      3. Local Innovations and Global Opportunity
      4. BOP Solutions for Developed Markets
      5. Lessons for MNCs from BOP Markets
        1. Capital Intensity
        2. Sustainable Development
        3. Innovations
      6. The Costs of Managing
      7. Learning to Live in a Network of Relationships
      8. Endnote
    4. 4. The Ecosystem for Wealth Creation
      1. Market-Oriented Ecosystem
      2. Ecosystems for a Developing Country
      3. Learning the Sanctity of Contracts
      4. Reducing Inequities in Contracts
      5. Building Governance Capabilities Among the Poor
      6. Endnotes
    5. 5. Reducing Corruption: Transaction Governance Capacity
      1. Are the Poor Poor?
      2. Transaction Governance Capacity (TGC)
      3. Building TGC
      4. The Andhra Pradesh e-Governance Story[8]
      5. eSeva
      6. Center for Good Governance
      7. Impediments
      8. Lessons from the Andhra Pradesh Experiment
      9. Endnotes
      10. Appendix: List of eSeva Services
    6. 6. Development as Social Transformation
      1. Development as Social Transformation
      2. Breaking Down Barriers to Communication
      3. BOP Consumers Upgrade
      4. Gaining Access to Knowledge
      5. Identity for the Individual
      6. Women Are Critical for Development
      7. Evolving Checks and Balances
      8. The Real Test: From the Pyramid to the Diamond
      9. Endnotes
  6. II. Business Success Stories from the Bottom of the Pyramid
    1. Financing the Poor
      1. Endnotes
    2. Aravind Eye Care—The Most Precious Gift
      1. Endnotes
    3. Energy for Everyone
      1. Endnotes
    4. Agricultural Advances for the Poor—The EID Parry Story
    5. Retail for the Poor
    6. Information Technology to the Poor
      1. Endnotes
    7. The Jaipur Foot Story
      1. Endnotes
    8. Health Alerts for All
      1. Endnotes
    9. Transparent Government
      1. Endnotes
    10. The Annapurna Salt Story
      1. Endnotes
    11. Homes for the Poor—The CEMEX Story
      1. Endnotes
    12. From Hand to Mouth—The HHL Soap Story
      1. Endnotes
    13. Biographies of the Researchers/Writers of the Success Case Stories from The Fortune at the Bottom of the Pyramid
      1. Ruchi Misra
      2. Jeff Phillips
      3. Michael Hokenson
      4. Sachin Rao
      5. Tej Shah
      6. Todd Markson
      7. Kate Reeder
      8. Ajit Sharma
      9. Praveen Suthrum
      10. Andrew Wilson
      11. Mindy Murch
      12. Kuttayan Annamalai
      13. Sami Foguel
      14. Anuja Rajendra
      15. Scott Baron
      16. George Weinmann
      17. Scott Macke
      18. Ajay Sharma
      19. Sharmilee Mohan
      20. William LaJoie
      21. Cynthia Casas
    14. About the Video Success Stories