Excerpts from The Fortune at the BoP
By C. K. Prahalad.
Professor of Corporate Strategy and Int'l Business at
Univ.of Michigan Business School
P.3: "What is needed is a better approach to help the poor, and approach that involves partnership with them to innovate and achieve sustainable win-win scenarios where the poor are effectively engaged, and at the same time, the companies providing products and services to them are profitable."
P.5 "The strength of this innovative approach is, as you will come to appreciate, is that they tend to create opportunities for the poor by offering them choices and encouraging self-esteem."
P9: "From aid focused on large infrastructure projects and public spending on education and health, they are also moving toward a belief that private sector investments is a crucial ingredient to poverty alleviation."
P.16 "The traditional approach to creating capacity to consume among the poor has been to provide the product or service free of charge. This has the feel of philanthropy. As mentioned previously charity might feel good, but it rarely solves the problem in a scaleable and sustainable fashion"
P.19 "By focusing on BoP consumer's capacity to consume, private sector businesses can create a new market. The critical requirement is the ability to invent ways that take into account the variability in the cash flows of the BoP consumer's that makes it difficult for them to access the traditional market for goods and services oriented toward the top of the pyramid."
P27: "Innovation in BoP markets can reverse the flow of concepts, ideas, and methods. Therefore, foreign MNC that aims to stay ahead of the curve, Experimenting in BoP markets is increasingly critical. It is no longer an option. "
P.29: "Building the savings habit and giving them access to the basic building blocks of financial services must precede providing them with access to loc-cost loans or rain and crop insurance."
P.45: "Enabling people to buy by accessing markets creatively and designing affordable products for them breaks the long head assumption that BoP markets are not viable."
P49. "The BoP can be a source of innovations for not only products and processes, but business models as well."
P57: "Innovations must become 'value oriented' from the consumer's perspective. The BoP focuses attention on both the objective and subjective performances of the product or service."
P.60 "Business management skills, technology, and contracts are pushed down to the local grassroots level."
P.63 "There have been few attempts to focus on the symbiotic nature of the relationships between various private sector and social institutional players. That can lead to a rapid develop of markets at the BoP."
P.64: "The private sector in the BOP context includes social organizations of different kinds that interact to crate markets and develop appropriate products and services and deliver value. A business system is at the heart of the ecosystem for wealth creation. "
P66: "The dilemma for public policy makers is clear: If we can't pick one sector of special attention, how do we mobilize the whole ecosystem?"
P77: "Transaction governance capacity is about making the entire process as transparent as possible and consistently enforced. "
P.78 : "Most developing countries do not fully recognize the full costs of corruption and its impact on private sector development and poverty alleviation. The capacity to facilitate commercial transactions thought a system of lows fairly enforced is critical to the development of private sector"
P81: "Transparency from widely understood and clearly enforced rules. Transactions involving these rules must be clear and unambiguous."
P.82: "There is a need for us to recognize that the economic growth fueled by the market economy around the world is not a single, monolithic problem. Each has its own road to travel."
P.99: "When the poor at the BoP are treated as customers comma they can reap the benefits of respect, choice and self-esteem and have an opportunity to of the poverty trap."
P.100"The capability is to solve the perennial problem of poverty through profitable are not available. to most nations are we have illustrated. However, converting the poor into a market will require innovations.
P.100" As BoP consumers get an opportunity to participate in and benefit from the choices of productions and services made available through market mechanisms the accompanying social and economic transformations can be very rapid.
P. 109: "More important, social transformation is about the number of people who believe that they can aspire to a middle class lifestyle it is the growing evidence , of opportunity, role models, and real signals of change that allow people to change their change their aspirations."**End