Prahalad's debate - Recently, an academic debate has broken...

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Recently, an academic debate has broken out over the selling of Fair  both faculty in the University of Michigan's business school.  In order  to understand this debate, we begin with the position of C. K.  Prahalad, who also sits on Hindustan Lever's board of directors, and  has often featured the company as an example of good business  Lovely is poor young women who aspire to a better life.  As you read  this essay, note the reasons Prahalad thinks that selling to the poor  is good for all concerned. C. K. Prahalad, "Why Selling to the Poor Makes for  Good Business," Fortune, November 15, 2004, p.  70-71. THERE IS AN INVISIBLE market waiting at the  bottom of the world economic pyramid-a market of  five billion people who live on less than $2 a day.  They are invisible to most large companies because  few executives can conceive of a market among  people that poor. Businesspeople think that the poor cannot afford their  products and services, and also assume, naively, that  the poor have no use for advanced and emerging  technology. In fact, selling to the poor is a uniquely  powerful way to achieve breakthroughs in products  and management practices: The bottom of the 
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economic pyramid is a sandbox for innovation. But  you have to understand the rules of the game, which  can be startlingly different from what you are used to. The poor cannot be Wal-Martized. Consumers in rich 
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This note was uploaded on 06/20/2008 for the course IAH 201 taught by Professor Dontknow during the Spring '05 term at Michigan State University.

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Prahalad's debate - Recently, an academic debate has broken...

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