The Fortune at the Bottom of the Pyramid, Revised and Updated 5th Anniversary Edition: Eradicating Poverty Through Profits
ISBN: 9780137009275

P8. “retrofitting business models from the developed markets will not work”.

P11. Key lessons:

P25. “if we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity can open up.”

P40. “create the capacity to consume”; not merely treating the poor as recipients of free handouts.
3 principles: affordable, accessible, available

P43. How companies have to rethink aspects like product features, packaging, credit schemes, and distribution when serving BOP markets. E.g. BOP consumers have unpredictable cash flows, so can afford only smaller quantities. May buy shampoo sachets rather than bottles. Power supply to their homes may also suffer frequent brownouts; they will prefer washing machines that will resume where it last stopped rather than restart the entire cycle. Shopping times are after 7pm (not before), after a day’s work when they receive their daily wages. Some companies have introduced credit schemes based on groups (rather than individuals) and requiring the group to learn how to save.

Establishing trust between the company and BOP consumer is often cited as key. Companies also must learn to trust their BOP customers. Cites the default rates for loans as lower among the BOP markets.

P49. On 12 principles of innovation for BOP markets. E.g. Products must work in hostile environments; must be scalable and have wider distribution; require hybrid solutions; focusing on price-performance (not just lowering prices; quality and safety is just as important; one way is to highly specialise the product line e.g. Cardiac surgery in India; Aravind Eye Hospital p82).

P98. On “Building governance capabilities among the poor”. Bank of Madura, India, and Self-Help Groups (comprising of 20 women). Selected bank managers, for ability to earn trust, would work with selected women for the group.
Step 1: form the group
Step 2: mobilise savings
Step 3: invest savings
Step 4: learning leadership
Step 5: taking responsibility for the village (local politics)
Step 6: access to bank capital (micro-loans)

P87. BOP markets represent 80% of humanity.

P111. case study of Andhra Pradesh (1998), a state in India with 48% illiteracy, whose Chief Minister decided to implement an internet/ digital system to reduce corruption and speed up transactions, e.g. Landsales, tax filing, license applications.

P113. Makes the point that corruption increases sharply during implementation before gradually falling off after the system is in place.

P134. “women are central to the entire development process”﹑ cites BOP examples; author suggests little attention has been paid to actively co-opting women in efforts to build markets and lead the development process.

Chapters from reactions from CEO on BOP concept. E.g. P147 REUTERS and “Market Light” service, delivering info (crop prices, weather etc.) via SMS in native language to farmers in India.

P286. Case study for Aravind Eye Care. Policy is to start with own surplus and not bank loans. Doctors and nurses work much harder and lower pay but are in for the social commitment. One nurse cited that people give up seats to them on buses when they are spotted with their uniforms.

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