Book Review, Chapter 3:
Book: Bottom of the Pyramid by C.K.Prahalad BOP: A Global Opportunity
Library Reference: N/A
Amazon.com Reference: http://www.amazon.com/Fortune-at-Bottom-Pyramid/dp/B00006L5AW/
Quote:
“Needless to say, the new product built for the BOP market is higher in quality and provides a better price-performance proposition”
“The most interesting lesson from MBCs from the operation in the bop markets is about costs-for innovation, distribution, manufacturing and general “costs of organization”. Because the bop forces and extraordinary emphasis on price performance, firms must focus on all element of cost.”
Learning Expectation: On this chapter, I want to know:
1. If the market at the bottom of the pyramid really worth a fortune?
2. If it can really conquer global markets?
Review:
Personally, I really love this chapter because it really knocks something on my head, and this is the fact that bottom of the pyramid is really worth a fortune. For the reason that it can also conquer the global market in which any business mans dream. Actually it wasn’t that easy to realize this because there are lots of things that you should think about, and people become skeptical.
It’s a good thing that the book provides four distinct opportunities for a large firms and it is as follows:
1. Some BOP markets are large and attractive as stand-alone entities.
Because the bottom of the pyramid markets is large in number, each bop from different place can be considered as stand alone. Each sectors of bop also can stand on their feet without any help because they are already used to it.
2. Many local innovations can be leveraged across other BOP market, creating a global opportunity for local innovations.
Since bottom of the pyramid markets needs more quality in a much lesser price, the company catering to this market which also said in the book that rich becomes interested on it. As I will quote on the book “The quality, efficacy, potency and usability of solutions developed for the bop markets are very attractive for the top of the pyramid.”
3. Some innovations from the BOP markets will find applications in developed markets.
One innovation that I really like is the detergent in India, these innovation attract also rich which I stated on the previous numbers. Those samples are the proof that these innovations also find its applications on the developed markets.
4. Lessons from the BOP markets can influence the management practice of global firms
“The bop can be a source of innovations for not only products and process but business model as well.” That is an exact quote from the book. And based on this number, I can truly say that bop market influence practice of global firms. One great practice is that company can offer great quality with a lesser price that the bottom of the pyramid market needs and crave.
What I have learned:
Actually, it’s not what I learned but it is what I realized. By reading this chapter, I realized that Philippine is a country more fortunate than the India yet we can see that the Indian are more successful because they are really looking and scanning their environment, and making some move in order for them to be better.
If the India can do that, we can also do what they did. I can say that we are one of the most intelligent being and we can really do something that can surprise other country. We should always remember that India is also like Philippines, we are on the same land.
Integrative Question:
1. What are the first distinct opportunities for large firms?
2. What are the second distinct opportunities for large firms?
3. What are the third distinct opportunities for large firms?
4. What are the fourth distinct opportunities for large firms?
5. Who created the Jaipur foot?
