|Updated: 5/16/2006; 4:19:49 PM.
Communications and info tech in developing countries, especially wireless broadband and high-value applications
Tuesday, August 24, 2004
Economist on Prahalad
: Good short review. "To be profitable, firms cannot simply edge down market fine-tuning the products they already sell to rich customers. Instead, they must thoroughly re-engineer products to reflect the very different economics of BOP [the bottom of the pyramid]: small unit packages, low margin per unit, high volume. Big business needs to swap its usual incremental approach for an entrepreneurial mindset, because BOP markets need to be built not simply entered. Products will have to be made available in affordable units -- most sales of shampoo in India, for example, are of single sachets. Distribution networks may need to be rethought, not least to involve entrepreneurs from among the poor. Customers may need to be educated in how to consume, and even why -- about credit, say, or even about the benefits of washed hands. The corruption now widespread in poor countries must be tackled (about which Mr Prahalad has penned a particularly useful chapter). " 2:36:42 PM
Copyright 2006 © Ken Novak.
Last update: 5/16/2006; 4:19:49 PM.