C.K. Prahalad’s perspective
Characteristics of Mexican market
C.K. Prahalad’s approaches for Mexican market
In this research let me say some words about C.K. Prahalad perspective and links between his theory and real modern Mexican market.
I chose Mexico because it is a country with a very high poverty headcount ratio at national poverty line (% of population). World Bank gives us number 51.3 % by 2010 (World Bank). But Mexico is also remarkable by its economic growth. We can consider this country as fastest growing economy in Latin America (Marcelo M. Guigale, 2001). But anyway as most of the Latin America region, Mexico faces many economic challenges.
When we talk about poverty we should understand that poverty is a complex and multidimensional phenomena and it is not only lack of income but also a state of mind.
Reduction of poverty is a key area for the government. To cope with poverty government uses specific social politics. It is not only target policies like opportunities for income but also broad policies. By broad policies we can mean education, job training, etc. As was mentioned before, poverty not only lack of income but also state of mind. And government is trying to pull out with the roots poverty by changing people’s mind. Government provides these reforms with saying that rural violence has been increased particularly in the southern part of Mexico (Lustig, 2006). But it only means that poverty is in the heart and not in the pockets.
1. C.K. Prahald’s perspective
Nowadays we are led by the developed countries and names of its countries always guarantee success. Some of developed countries like China, Vietnam and India are notorious by the poverty and bad quality products.
But every economy has its own cycles. Singapore was an extremely poor country but now it’s on the list of developed counties. America is still considered as a developed country but we often hear from news that all the
References: [Giugale, 2001] Marcelo M. Guigale, Olivier Lafourcade, Vinh H. Nguyen. Mexico. A comprehensive development agenda for the New Era. 2001 [Prahalad, 2005] C.K. Prahalad. The fortune at the bottom of the pyramid. 2005 [Ann Bernstein 2010] Ann Bernstein. The case for business in developing economics. 2010 [Lustig, 2006] Nora Lustig. Mexico, the remaking of an economy. 2006 [Prahalad 2009] C.K. Prahalad. The fortune at the bottom of the pyramid. 2009 [Economy Watch] http://www.economywatch.com/market/world-markets/mexican-market.html