PHYSICS 102 Lecture Notes - Lecture 9: Critical Role, Smart Card, Social Capital
Document Summary
Gb: serving the world"s poor, profitably prahalad & hammond: by stimulating commerce & development at the bottom of the economic pyramid, mncs could radically improve lives of billions of people create more stable, less dangerous world. Bop: bottom of the economic period: untapped potential, world"s poor are plentiful: 4 billion (65% of world earns less than ,000 per year, mnc"s are reluctant to invest due misconceptions. Truth individual incomes are low but aggregate buying power is large. Eg. 7% of income of villagers in rural bangladesh is spent on phone services (higher percentage than consumers in traditional markets) Misconception poor are too concerned with fulfilling basic needs, don"t opt for luxury items. Truth poor spend income on things they can get now buying house & accessing running water in eg mumbai is unrealistic = thus, spend money on things that improve life quality now. Misconception goods sold in poor areas are cheap = no room for competitor to make profit.
