Page - 5

Previous

ITC's e-choupal, ITC's e-choupal is a pilot project conceived by the FMCG giant in 2000 for rural India aimed at the following objectives:

Thus C. K. Prahalad showed that poor people - at the bottom of the pyramid (BOP) - represent a very attractive market opportunity. Thus the BOP proposition can be summarized as follows:

1. There is much-untapped purchasing power at the bottom of the pyramid. Private companies can make significant profits by selling to the poor.
2. By selling to the poor, private companies can bring prosperity to the poor, and thus can help eradicate poverty.
3. Large multinational companies (MNCs) should play the leading role in this process of selling to the poor.
4. It is argued that selling to the poor can simultaneously be profitable and eradicatepoverty. The profit motive alone is enough to drive companies to do good; Prahalad rejects corporate social responsibility as the basis for BOP initiatives. Thus, there is both glory and fortune at the bottom of the pyramid. This is, of course, a very appealing proposition and has drawn much attention from senior managers, large companies and business schools.

Concluded.

• «Previous
• 1
• 2
• 3
• 4
• 5
• Next »

* Contributed by: -
Prof. M. Guruprasad is Senior Faculty for Economics, Finance and Research, with AICAR Business School Raigad / Mumbai. He has more than 15 years of experience in research and educating / training management students. He was research scholar with the University of Mumbai. Worked as Executive in the Marketing research industry. Also Conducted Workshops and Training programmes. He has published articles in various industry magazines, newspapers and has initiated many discussions on academics.