Book Review: Chapter 1: The Market at the Bottom of the Pyramid
Book: The Fortune at the bottom of the Pyramid
Author: C.K. Prahalad and Stuart L. Hart
Library Reference: N/A
Amazon Reference:
http://www.amazon.com/Fortune-at BottomPyramid/dp/B00006L5AW/ref=sr_1_2?ie=UTF8&s=books&qid=1232066330&sr=1-2
Quote:
“What is needed is a better approach to help the poor, an approach that involves partnering with them to innovate and achieve sustainable win-win scenarios.”
I chose this statement simply because it discusses and focuses on helping out the unfortunate people. In this earth we live, we are community and since we are a community, our mission is to help other people. The concept of solidarity is the main topic of this particular quote. We must do something that is good for others.
Learning Expectations
- To know basically the concept of market at the bottom of the pyramid?
- What this is all about?
- Understanding how it works for the market or industry
- To relate it to “Markets are conversations”
Review:
This first chapter entitled The Market at the Bottom of the Pyramid. At first glance, we have no idea on how to understand this particular topic simply because; the word is not that understandable. So, the solution to this in order to understand this topic very well, we will discuss it word by word. Let’s start in the word “Market”. Just like our Vertical Solutions class, the main topics for that subject are markets and of course, all VERTSOL students know about market. The first thesis entitled, “Market’s are conversation”. Yes, markets are conversations knowing the fact that markets are now literally talking and knowing also the fact that people is the very vital part of the market. If there are no people who will be working for the market, obviously no there’s no market. The second word is the word “Bottom”. It means that it is the lowest part of something that may never reach. The farthest point particularly in the pyramid because it is the topic for this particular chapter.
For the word pyramid, it is a triangular shaped object. Usually found on Egypt as we all know. Anyway, Pyramid is just a representation of statistic to further understand the meaning of this particular chapter. Now we all know the meaning of each word, the number 1 question is that, what is this for. What are the purpose of this concept or theory to the market and the purpose of it for the people and we will learn the purpose of this concept later on as we go on to this chapter.
As stated here on the book, the 21st century number one problem is the poverty; furthermore, disenfranchisement considers the world’s number one problem. This only means that the world is in need of entrepreneurs who will be responsible for the solutions of daunting problems occurring in our world today. This chapter provides basic assumptions for the bottom of the pyramid.
- First, the poor represent as a “latent market” meaning that these poor people are underlying to active engagement of private enterprises. They don’t have the opportunity to acquire this.
- Second, the Bottom of the Pyramid provides a new growth and opportunity for private sectors. The previous solutions cannot now create markets in Bottom of the Pyramid. Meaning that these private sectors had enough power to acquire BOP as a market.
- Third, BOP Markets must become an integral part of work of private sector. That means the most important and the basic part can be conducted by the community. One way of doing this is an CSR-Corporate Social Responsibility.
These are the best guidelines to avoid poverty in our country. Appreciate each of it and these powerful concepts will go back to us and gain more advantage. It is for the betterment of the world.
What I’ve learned:
As stated on this chapter, the main purpose of this book in overall is to illustrate that the typical pictures of poverty mask the fact that the very poor represent courageous entrepreneurs and value-conscious consumers. This only means that it’s time for the people of the world to know that people are changing and evolving to fight against poverty. The so called “Poverty mask” must be removed in the lives of every individual living here on earth.
I’m very interested in this book because, we can apply our learning in ethical and moral values as well as integrating or combining the concept of vertical solutions particularly the market towards the fight against the poverty. Technology and Ethical values are present here. Therefore, as a student, we must learn about these concepts. Thanks to our program because we can combine our ethical values as well as marketing skills and be able to do a fortune at the bottom of the pyramid.
Integrative Questions:
- What is the Bottom of the Pyramid?
- How does it affect less fortunate people lives?
- Can we easily integrate this concept for them?
- What are the purposes or what are the advantages of this chapter?
- What are the so called “Tiers” for?
Citations: N/A
