Book Review: Fortune at the Bottom of Pyramid

This is an inspiring book and a very timely read (it was written around 20 years back, but is super-relevant today). CK Prahalad shows the reader how corporations can work towards solving poverty. The book is not about grants or monetary aid. It’s about strategies to create ecosystems which converts Bottom of pyramid population into micro-creators and micro-consumers. The author contends that BOP is a huge market opportunity. If corporations want to unlock this market , they need to understand the aspirations and reality of the BOP (Bottom-of-pyramid) customers. It’s not just about delivering the same products at lower price point. It’s about creating high-quality products, and market them to the consumers with right delivery vehicle, financing and partnerships. The book contains insightful case studies about companies in India and around the world, which have delivered pretty awesome products to BOP customers. It sheds light on ingenious strategies which aim to reengineer instead of reinvent the existing dynamics of consumer’s world. It focusses on creating partnerships and leveraging existing ecosystem of NGOs, outreach partners, local governments and community.

CEMEX, a cement company leveraged ROSCAs prevalent in Mexico to let users create and save towards building their own home. Casas Bahia in Brazil created a system to let consumers buy consumer electronics on credit. Back home in India, HUL created product SKUs and distribution channels to serve BOP consumer. ICICI bank leveraged partnership with Mudra Bank to take financial products to rural market. ITC leveraged IT to create e-chaupal and empower a farmer take decision about selling their produce and order inputs for their farms.

This book was written in a time, when network connectivity was limited to tier-1 cities and there were media-dark areas. That means, a large fraction of population not connected to mainstream media. Reading it today, knowing that Jio has happened, every chapter sparks ideas and possibilities. This is an inspiring book because it gives framework for businesses to contribute to society, uplift the community and effect positive lasting change.