The Bottom of the Pyramid

Powerful Essays
Introduction
C.K. Prahalad’s perspective
Characteristics of Mexican market
C.K. Prahalad’s approaches for Mexican market
Conclusion

Introduction

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

You May Also Find These Documents Helpful

  • Powerful Essays

    Bottom of the Pyramid

    • 9081 Words
    • 37 Pages

    The quest for the fortune at the bottom of the pyramid: potential and challenges Dennis A. Pitta The University of Baltimore, Baltimore, Maryland, USA, and Rodrigo Guesalaga and Pablo Marshall ´ Pontificia Universidad Catolica de Chile, Santiago, Chile Abstract Purpose – The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low-income consumers. Design/methodology/approach…

    • 9081 Words
    • 37 Pages
    Powerful Essays
  • Powerful Essays

    Bottom of Pyramid

    • 5393 Words
    • 22 Pages

    1.0 INTRODUCTION This section will go through the definition of marketing management and its ethical concerns towards Bottom of Pyramid (BOP) group of people. Besides, the element of Corporate Social Responsibility (CSR) also included in this introductory paragraphs. Marketing is growing and keep on changing with time and age. To manage marketing, one must be knowledgeable and really understand regarding the marketing concept to be applied when doing a particular business. Wikipedia has defined…

    • 5393 Words
    • 22 Pages
    Powerful Essays
  • Powerful Essays

    Bottom of the pyramid

    • 2581 Words
    • 11 Pages

    An evaluation of the merits of targeting customers at the “bottom of the pyramid”. In what sectors and in which ways, if any, do the considerations raised by this approach alter the strategies of multinational corporations selling into emerging markets? Graduate Institute of International Studies, Geneva May 2007 Maja Rüegg May 2007 International Business Second Assignment The income pyramid in emerging markets can be divided in four segments: From top down, it contains…

    • 2581 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    OPPORTUNITIES AT THE “BOTTOM OF THE PYRAMID” In economics, the “Bottom of the Pyramid” refers to the largest, poorest socio-economic group and do not have access to the benefits of modern, organised and efficient industrial systems. In global terms, this is the 4 billion people who live on less than US$2 per day. The “Bottom of the Pyramid” phrase is used in particular by people developing new models of doing business that deliberately target that demographic, often using new technology.…

    • 566 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Lessons from the Field: Sales at the Bottom of the Pyramid By Heidi Krauel and Joel Montgomery, 2009 Acumen Fund Fellows April 2010 Summary Enterprises serving bottom of the pyramid (BoP) markets have tremendous opportunity to create commercial and social impact, but are often illequipped to do so. A particular question that needs to be studied is: how can we sell more effectively to BoP consumers? In this piece, Acumen Fund Fellows Heidi Krauel and Joel Montgomery draw on their field experiences…

    • 4711 Words
    • 19 Pages
    Best Essays
  • Satisfactory Essays

    Case 3-4 Marketing to the Bottom of the Pyramid Central Issues The concept of the Bottom of the Pyramid (BOP) market was originally developed by C.K. Prahalad in “The Fortune at the Bottom of the Pyramid” to highlight a large potential market made up of a large segment of the world’s population that has, until recently, been an ignored market segment among multinational companies. In an age of increasing global competition and near-saturation for some products in more mature markets, this…

    • 585 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The Market at the Bottom of the Pyramid urn on your television and you will see calls for money to help :he world's 4 billion poor-people who live on far less than $2 a day. In ict, the cry is so constant and the need so chronic that the tendency for nany people is to tune out these images as well as the message. Even :hose who do hear and heed the cry are limited in what they can :ccomplish. For more than 50 years, the Vorld Bank, donor nations, tarious aid agencies, narional governments, and…

    • 6745 Words
    • 27 Pages
    Powerful Essays
  • Satisfactory Essays

    This points fundamental inconsistency in the emerging markets of MNC’s. This results in low penetration, disappointing market shares and poor profitability. The main purpose:-To understand the nature of emerging markets. Examine company responses to the challenges faced in these markets. Example:- Kellogs entered in INDIA in mid 1990’sIts sales was only $10 million in 3 yrs which is less Reason:- Advertisement was not appealing to the masses & Prices were high Revised their strategy – introduced…

    • 581 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    the existing literature with regards to low income earners or bottom of the pyramid (BOP), barriers to enter the BOP, challenges of sustaining business at BOP and success factors for business at BOP. Also it explicates the telecommunication network supporting the business at BOP and the possible synergies through partnerships with business ventures that are typically unaffordable to the BOP. 2.2 Bottom of the Pyramid (Base of the Pyramid) The distribution of wealth and the capacity to generate incomes…

    • 1204 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Summary of the Fortune at the Bottom of the Pyramid We have all heard of the terms of classification such as the upper class, middle class, and lower class that is used to identify the people of wealth in the world. But just how are we separated into those three groups? The numbers of people in each class and the percent of wealth each control is daunting. The pyramid of global wealth is separated into three sections. Tier one, the peak of the pyramid, represents 85 percent of the world wealth…

    • 775 Words
    • 4 Pages
    Good Essays