Book Review: Chapter 4: The Ecosystem of Wealth Creation
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
Learning Expectations:
- I expect to learn the connection of ecosystem to BOP
- What is the role of Ecosystem to wealth creation?
- How is this effective to BOP?
- I want to learn the Market-Oriented Ecosystem. What is it?
- I want to learn the building Governance capabilities among the poor.
- The private-sector in ecosystem
- How does this transform the basis for commercial transactions within a developing economy?
Quote:
“The social capital or individual entrepreneurs has a focus on both business and social developmental initiatives at the BOP”
This is considered as one aspect of ecosystem. I believe that entrepreneurs are part of the ecosystem what aims for social developmental initiatives for BOP. These entrepreneurs who aims for social and developmental initiatives has a heart to help unfortunate people who are in need. A business system is at the heart of ecosystem for wealth creation. I believe this because business system aims for what is good for the people.
Review:
First, let us define the meaning of ecosystem. When people heard that word, the first thing comes up to our mind are living organisms living here on earth. Organisms are part of our environment. Therefore, we can say that ecosystem is an environment where people are living. Naturally, when God created this world, ecosystem already exists. People are now relating themselves to meet another organism. That’s make a better ecosystem. The explanation is in natural world. But how about in Business world? Is this concept available?
It is stated here that there have been a few attempts to focus on symbiotic nature of the relationships between various private sector and social institutional players that can lead to rapid development of markets at BOP. With this support statement, the concepts of ecosystem in business world are now related knowing the fact that it is for rapid development. In relation to rapid development, let us discuss about the market-oriented ecosystem since these are related to each other. Basically, Market-oriented ecosystem is a framework that allows private sector and social actors, act together and create wealth in a symbiotic relationship. This definition is somewhat similar to ecosystem but putting it on the business side. Knowing the fact that ecosystems are very depended on each other, it is very feasible to create a market-based ecosystem simply because people are connected. Also, we consider as market are conversation, we can now find a reason why markets are ecosystem. But the big problem of market-oriented ecosystem is that if one sector for special can’t pick up, how can they move on with the whole system? That’s the big dilemma for the ecosystem.
For the developing countries, they are the target of BOP Market because they are still developing and improving their respective economic state. One example here is the Philippines, it is considered as a developing country and considering this state, Philippines need a help for those who are in developed country. For the developed countries to help developing countries, they need a competitive condition such as the availability of new technologies, the nature of resources, and the educational infrastructure. These are the basic factors needed to help under developed countries. The private sectors are the fast-moving of consumer goods who has capabilities to help developing countries. They have good relation to the government as well as in other company.
What I’ve learned:
The history tells us the result of evolution made by humans. It is stated here that the large firm was a big symptom of a maturing economy focused on system efficiencies through scale and scope. This means that large firms are advantage for those who are in developing countries because these large firms can are feasible enough to give help. But the problem is that these large firms are focused on system efficiencies. They think the most efficient way to help other ecosystems.
The goal in development is to bring as many people as possible to enjoy the benefits of an inclusive market. In short, the BOP goal for ecosystem is the development or the BOP gives something to for those people who are in need so that they can meet the enjoyment even if they are not in the good state to enjoy happiness. But even if it is not that good, the goal is to meet happiness whatever it takes. This chapter tells us that the Market-based ecosystem must provide us to build basic infrastructure stated above this review most especially education. It allows large firms to build and profit growth markets which are advantageous for these companies.
Integrative Questions:
- What is Market-Oriented Ecosystem?
- What are the ecosystems for developing country?
- What’s the role of History in evolution of the large firms?
- Can Market-based ecosystem provide us an approach to build basic infrastructures?
- BOP consumers can benefit in local entrepreneurship?
Citations: N/A
