Source | YouTube | Global Peter Drucker Forum | Deepa Prahalad
Day II at the 3rd Global Peter Drucker Forum on November 4th, 2011:
Deepa Prahalad (US) Strategy consultant; co-author with Ravi Sawhney of Predictable Magic: Unleash the Power of Design Strategy to Transform Your Business
The Bottom of the Pyramid (BOP) approach first put forth by CK Prahalad almost a decade ago argues that modern MNCs have a critical role to play in resolving one of the biggest challenges of our time: converting the 4 billion poor around the world into a vibrant consumer market. The argument was that for-profit enterprises could work where and charity and aid have failed because it provides a sustainable model for business in pace of traditional CSR activity. It also forces companies to pay attention to the needs and desire of the poor and innovative new products and services.
Many firms have taken up the challenge, and some have created new markets and scalable business models in the process. More important, the BOP is now seen as a place to create goods and services with global relevance because of its unique characteristics. Even for businesses whose core consumers are outside the BOP, this market is important for learning about evolving patterns in innovation, collaboration and new business model creation.
Understanding the BOP and what it has to offer is more important than ever with income inequalities rising around the world and widespread introspection on the role of the corporation in society.