TAILIEUCHUNG - THE FORTUNE AT THE BOTTOM OF THE PYRAMID

The political principle that underlies the market mechanism is unanimity. In an ideal free market resting on private property, no individual can coerce any other, all cooperation is voluntary, all parties to such cooperation benefit or they need not participate. There are not values, no "social" responsibilities in any sense other than the shared values and responsibilities of individuals. Society is a collection of individuals and of the various groups they voluntarily form. The political principle that underlies the political mechanism is conformity. The individual must serve a more general social interest--whether that be determined by a church or. | strategy business The Fortune at the Bottom of the Pyramid by . Prahalad and Stuart L. Hart from strategy business issue26 first quarter 2002 2002 Booz Allen Hamilton Inc. All rights reserved. e-Doc The Fortune SECURITY AND STRATEGY attheBottom of the Pyramid. J by . Prahalad and Stuart L. Hart Low-income markets present a prodigious opportunity for the world s wealthiest companies to seek their fortunes and bring prosperity to the aspiring poor. content I strategy competition 1 Illustration by Marco Ventura With the end of the Cold War the former Soviet Union and its allies as well as China India and Latin America opened their closed markets to foreign investment in a cascading fashion. Although this significant economic and social transformation has offered vast new growth opportunities for multinational corporations MNCs its promise has yet to be realized. First the prospect of millions of middle-class consumers in developing countries clamoring for products from MNCs was wildly oversold. To make matters worse the Asian and Latin American financial crises have greatly diminished the attractiveness of emerging markets. As a consequence many MNCs worldwide slowed investments and began to rethink risk reward structures for these markets. This retreat could become even more pronounced in the wake of the terrorist attacks in the United States last September. The lackluster nature of most MNCs emergingmarket strategies over the past decade does not change the magnitude of the opportunity which is in reality much larger than previously thought. The real source of market promise is not the wealthy few in the developing world or even the emerging middle-income consumers It is the billions of aspiring poor who are joining the market economy for the first time. This is a time for MNCs to look at globalization strategies through a new lens of inclusive capitalism. For companies with the resources and persistence to compete at the bottom of the world economic pyramid .

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