Aug 25, 2004

Bottom of the Pyramid, CK Prahalad's thoughts

BusinessPundit Rob blogs about CK Prahalad's Bottom of the Pyramid thoughts. To be fair, CKP has been talking about it for over two years now, but I think now is the time for the marketing push to that idea. Dr. Madhukar Shukla blogs about why three assumptions or biases in CKP's arguments jar him.

And indeed I think MS is right. Take a look at this interview by Prahalad on the venture that he consulted with the Tata Group to launch the IndiOne hotel which apparently will charge Rs. 900 per room night. Not even middle of the pyramid Mr. Prahalad. Someone like me would also have to think twice about it! $20 is definitely not the bottom of the pyramid !

I think that rethinking the mental models of MNCs to actually get them thinking to alleviate poverty is going to be very very hard ! Enterprises that actually understand the poorest of the poor's needs are going to be organizations that are started in the grassroots. Remember it took a Grameen Bank to rethink a lending model to the women in Bangladesh.
Not a MNC bank.

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