Book:

Fortune at the Bottom of the Pyramid

Chapter Title:

Chapter 1: The Market at the Bottom of the Pyramid

Amazon Reference:

http://www.amazon.com/Fortune-Bottom-Pyramid-Eradicating-Poverty/dp/0131467506

Quote: “

The strength of these innovative approaches is that they tend to createopportunities for the poor by offering them choices and encouraging self-esteem.”

Learning Expectations:

•

To know more about markets

•

To understand the market at the bottom of the pyramid

Chapter Review

Poverty is one of the most daunting problems that our world is facing.Because of poverty, we need a better approach which involves the people to partnerwith them in order to innovate and achieve sustainable win-win scenarios where thepoor are actively engaged and, at the same time, the companies providing productsand services to them are profitable.The poor represent a “latent market” for goods and services. Activeengagement of private enterprises at the BOP is a critical element in creatinginclusive capitalism. BOP, as a market, provides a new growth opportunity for theprivate sector and a forum for innovations, and it must become an integral part of the work of the private sector.As stated in the chapter, all of us are prisoners of our socialization whichmeans that we perceive things on our own point of view, ideology, experiences, andestablished management practices. With that, we let our opinions to judge people.An example would be, there is an assumption that the poor have no purchasingpower and they do not represent a viable marker but the truth is the poor representa significant latent purchasing power because they spend their earnings in theirpriorities.The market development imperative involves both the consumer and theprivate sector firm. It has benefits to the consumer and these are creating capacityto consume, the need for new goods and services, and dignity and choice. Threeprinciples are mentioned in creating the capacity to consume and these are