BOP 4

Book Review: Chapter 4 (The Ecosystem for Wealth Creation)

Book: The Fortune at the Bottom of the Pyramid

Library Reference: None

Amazon Reference:

Quote: “A market-based ecosystem is a framework that allows private sectors and social
actors, often with different traditions and motivations, and of different sizes and
areas of influence, to act together and create wealth in a symbiotic relationship.”
-C.K. Prahalad

Learning Expectation:

In this chapter, I want to learn about market-oriented ecosystem and ecosystems for a developing country. Also, I want to learn about the sanctity of contracts, and of course, reducing inequities in contracts.

Review:

A market-based ecosystem is a framework that allows private sector and social actors, often with different traditions and motivations, and of different sizes and areas of influence, to act together and create wealth in a symbiotic relationship, C.K. Prahalad stated on this book. I took this out from the book because this is one of the most important things I learned in the entire book, The Fortune at the Bottom of the Pyramid.

Anyway, another thing I learned from this book is the ecosystems in a developing country. Based on how I understood this, this refers to ecosystems in a BOP country or market. Here I learned about HLL, the largest FMCG firm in India which is subsidiary of the corporation Unilever. Aside from this, I also learned about fast-moving consumer goods or also known as FMCG.

Honestly speaking, although this chapter was very short it was very clear and made its point well. I really like this chapter because it is detailed and well-explained which I think is quite hard to do considering that the topic and issue discussed is quite heavy.

What I Learned:

By the end of this chapter, I learned that about the ecosystems in a developing country and about market-based ecosystem. I also learned about reducing inequities in contracts and of course building governance capabilities among the poor.

Integrative Questions:

1. What is a market-oriented ecosystem?
2. What is the role of cooperatives?
3. How do you build governance capabilities among the poor?
4. What are the steps in the evolution of SHGs?
5. What is ITC?