The Fortune at the Bottom of the Pyramid – C.K. Prahalad

Book Review Chapter 4:

The Ecosystem for Wealth Creation

Library Reference: N/A

Amazon:

http://www.amazon.com/Fortune-Bottom-Pyramid-Eradicating-Publishing/dp/0131877291/ref=sr_1_1?ie=UTF8&s=books&qid=1234441981&sr=1-1

Quote:  “The private sector in the BOP context includes social organizations of different kinds that interact to create markets and develop appropriate products services and deliver value. A business system is at the heart of the ecosystem for wealth creation.”

    In the world today, a system is very vital. Whatever system it is, it is very vital as today; we are in the computer age and in almost all the companies, computers are used and they have their own systems, depending on what their business is. So, I basically agree that in coming up with a solution or in trying to make something better, a business system is at the heart.

Learning Expectation:

    I expect to learn more about the Ecosystem for Wealth Creation. I think it would be really great to create wealth as everybody strives hard for it. Well, other steal but that’s not the point. If we were able to come up with something that would make everyone wealthy, then there would be no suffering and no fighting. So I think it is good that we try to come up with such solution.

Review:

    In this fourth chapter of the Bottom of the Pyramid, it is stated that: The private sector in the BOP context includes social organizations of different kinds that interact to create markets and develop appropriate products services and deliver value. A business system is at the heart of the ecosystem for wealth creation. In this chapter, the goal is to change the focus of the debate from a preference for one form of private sector at a time to focus on a market-oriented ecosystem that is a combination of multiple forms of private enterprises coexisting in a symbiotic relationship.

    It is said that a market-based ecosystem is a framework that allows private sector and social actors, often with different traditions and motivations, of different sizes and areas of influence, to act together and create wealth in a symbolic relationship. Such an eco system consists of a wide variety of institutions coexisting and complementing each other. The concept of ecosystem is used because each constituent in the system has a role to play. They are dependant on each other. The system adapts and evolves and can be resilient and flexible. Although there will always be distortions at the margin, the system is oriented toward a dynamic equilibrium. Every developing country has the components of this portfolio. However the relative importance of the various components of the ecosystem differentiate depending on what country.

So basically, this chapter is all about the Ecosystem that is market based, in which it would help make the world better.

What I’ve learned:

    I have learned that a business system is at the heart of the ecosystem for wealth creation. Moreover, I have learned that it has to be market-oriented ecosystem.

Questions:

1.    How wealthy can it make us?

2.    Is the ecosystem very effective?

3.    If not, what is the most effective?

4.    How long will it take for us to be wealthy?

5.    Is it the best plan?

Citation: (C.K. Prahalad, 2006)