In C.K. Prahalad’s book, “The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits” he discusses the plethora of opportunities out there by catering to the BOP market. Additionally, he talks about how this would work and the benefits to all stakeholders involved. This was quite an interesting read as it allowed to me to see this issue from a different perspective and altered my views on this subject. The Bottom of the Pyramid, or BOP market represents the 4 billion of the world’s population that lives in poverty and on less than $2/day (Prahalad, 2010). Prahalad comes from a more market oriented approach where the needs of the BOP are the main focus. In having a full understanding of the problem and what is hindering the BOP from further development, companies are able to cater to those needs and reach an entirely new market. “… An approach that involves partnering with them to innovate and achieve sustainable win-win scenarios where the poor are actively engaged and, at the same time, the companies providing products and services to them are profitable“ (Prahalad, 2010). Companies include private-sector firms, multinational corporations (MNCs), aid agencies and civil society organizations. The reason it is important for us to address this issue is because the BOP is a market that has been ignored for a long time. There’s been recent recognition of the buying power that the BOP has as a whole and it allowed us to discover some viable opportunities that could potentially lead to a global movement. One of the first concepts introduced by the author is one that enabled me to approach his suggestions more open-mindedly because I quickly realized how I was also someone who had fallen victim to the Power of Dominant Logic. What Prahalad means by the power of dominant logic is that everyone is socialized in a different way and their perceptions are shaped by their own ideologies and experiences. Some of the common dominant logics that are identified in this case are that the poor are not target customers because they can’t afford our products and services, they have no use for our products, they will not appreciate the technological innovations, etc. In hindsight I realize that I was also under this assumption and understood how this logic restricts our ability to see the market opportunities at the BOP. After reading the book and taking Prahalad’s suggestions, that will be discussed, into account I was able to look past my initial perceptions and see how I can apply these concepts as a future manager. Although the BOP lives on very little, two things need to be considered: their purchasing power and population. The purchasing power of their $2/day cannot be compared to that of developed countries due to exchange rates. A collection of nine developing countries which collectively represent a population of about 3 billion was shown to have, in purchasing power parity terms, $12.5 trillion. For this reason alone we see the profitability opportunity in this market (Prahalad, 2010). There is a lot of emphasis in this book on innovations in corporate social responsibility and how they play a vital role in reaching these markets. In order for BOP markets to be reachable firms must become innovative and be able to come up with new solutions. The author illustrated a very simple yet vital concept that in my opinion is the real barrier to entry into this new market. The concept is this; implementing traditional business models in the BOP is ineffective because the needs and demands of people in Western society are much different than those at the BOP. The solution becomes simple; to reach the BOP new business models need to be created that will focus on meeting their needs and demands. By following such models they can begin to acquire and use resources more efficiently and have lower production costs. This leads to a concept that needs to be understood by firms and it is that price performance is key.…
The need to keep our children safe from falling out of bed and sustaining injury or death is important to all families. The number of accidents involving children who fall out of the bed accounts for 1.8 million visits to the emergency room and the more series involve over 400,000 hospital admissions including 450 deaths in the United States each year. The accidents not only affect the United States but globally as well. In England the number of hospital admissions due to falls has…
WORKSHOP 7 ~ PERFORMANCE EVALUATION & MARKET EFFICIENCY
Fund performance can be compared to some benchmark or target as a way of ranking and assessing that fund. This is obviously useful to an investor who may be considering whether to invest with this fund, and can also be used internally as way of monitoring fund manager performance.
Investment results need to account for both return and risk, previously we have measured these separately using for example the holding…
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Regression equation: yt=0.0109+1.1922xt
Interpretation: The excess return on stock will be 1.09% when then excess return on market portfolio is 0.
Interpretation: If the excess return on market portfolio increases by 1 percent, then the excess return on stock increases by 1.1922%.
(1) H0: αd=0 stock perform as good as portfolio
H1: αd≠0 stock is not perform…
Market Research and Market Planning P4
5 Issues that our school faces
BTEC courses is one of the issues we face and have a huge impact on our school because some students at the school are not capable of taking exams because they find it hard and have failed many previous ones. This is why it is better for them to do BTEC courses so there is no exam but they are still doing a lot of work and giving the work in before a deadline. If there were no BTEC courses then all students would have to…
2nd draft; first essay
To What Extent are College Classes Necessary?
Every person on this planet has something they are naturally talented at.
Whether you could sleep in every history class and still make a 4.0 average, or have the
ability to create a masterpiece with just a piece of chalk; each individual person just has
that certain knack others may not. With talent, comes struggle. Just because you can
create a short story in a matter…
consumption in order of satisfy a need.
Having ability & desire to address a want to satisfy a need
↑↑creates a market ( group of people with a demand ) & acquires customers ↑↑
Core exchange concepts Part two
Rating of usage experience
Purchase insistence & frequency
Natural interactive connection of lives or lifestyles
↑↑maintains a market ( group of people with a demand)
Definition of a relationship or relational exchange
A relationship or relational…
• CP has big Plans
Develops five year plan for new product launches and expanding to new
Toothbrush Market Segmentation
• Two segments: Value and Professional (super-premium in
• Therapeutic vs. Cosmetic
• 4 Oral care brands currently in super premium toothbrush
market (CP currently not in market)
• Oral-B leader in professional premium market
• Super-premium brushes = 35% unit volume / 46% dollar
TOOTHBRUSHES VS. TOOTHPASTE…
At the market, I saw so many different items for sale. There were stalls lined with exotic, succulent fruits in all different colours and sizes: Mango, papaya, passion fruit- they had everything! Underneath a Brobdingnagian canopy lay piles and piles of vibrant, Indian silk that were all significantly hand-woven into masterpieces of art. In addition, there was part of the street cornered off for the cows to sleep and stay whilst their owners auction them away to other people. It was the only part…
Stock markets in emerging economies
As the rise of emerging markets, there is an increasing number of investors tend to focus on emerging stock markets for further investors. However, the characteristics of stock markets in emerging economies sometime can be different from that in developed countries.
Strong equity capitalization increase in emerging markets
As shown in figure 1, emerging markets (EM) in developing countries have gone through a rapid speed growth in last 20 years. In 1990 the market…