Name: C.K. Prahalad
Age: 68 Designation: Paul and Ruth McCracken Distinguished University Professor, Ross School of Business, The University of MichiganWork History: Member of faculty at the University of Michigan from 1977. Before that he taught at IIM-Ahmedabad. His first job was at the Union Carbide battery plantAchievements: A Padma Bhushan awardee, Prahalad is the author of several bestsellers like Competing for the Future (with Gary Hamel), The Future of Competition (with Venkat Ramaswamy) and The Fortune at the Bottom of the Pyramid . According to Thinkers 50, he is the most influential business thinker alive.Hobbies: Travel, long walks and reading
One of the debates from the beginning has been whether it is fortune at the BOP vis-a-vis fortune for the BOP. Where do your thoughts on this stand?
It is a silly debate. It’s not either-or. If a micro-finance institution (MFI) lends at 20 percent interest and makes money, it’s fortune for the MFI. But if the alternative for the poor is to borrow at 150 percent, is it a fortune for the borrower as well? She is reducing her interest burden. No business can sustain itself if there is no value created for the consumer. If both parties don’t get value, there is no transaction. That’s a truism in business.
(This story appears in the 25 September, 2009 issue of Forbes India. To visit our Archives, click here.)
I suppose that the idea of Bottom Of the Pyramid will work always because the things which are concerns with the poor and to the middle class is of utmost importance.
on Apr 23, 2010I think in a country like INDIA where inefficient and corrupt people are often at the helm of things that especially concern with the poor and deprived such a model is a boon.<br /> These very businesses and business models can unleash the potential within INDIA and help us to grow at never seen before rates for a very long time.<br /> INDIAN rural people know they have certain problems and they have had such problems for quite some time hence they also have expertise and knowledge about the remedies to such problems.<br /> Last year there were about 10000 innovations that took place at the rural level.<br /> If the companies are able to leverage these they will be able to unleash extraordinary value by scaling up the entire nation at first and then the entire world. A 4 billion people opportunity lies ahead.
on Nov 12, 2009