Drawing on Prahalad's breakthrough insights in The Fortune at the Bottom of the Pyramid, great companies worldwide have sought to identify, build, and profit from new markets amongst the world's several billion poorest people, while at the same time helping to alleviate poverty. Five years after its first publication, this book's ideas are no longer "theory": they are proven, profitable reality. In the 5th Anniversary Edition, Prahalad thoroughly updates his book to reveal all that's been learned about competing and profiting "at the bottom of the pyramid." Prahalad outlines the latest strategies and tactics that companies are utilizing to succeed in the developing world. He interviews several innovative CEOs to discuss what they've learned from their own initiatives, including the Unilever business leader who's built a billion-dollar business in India. You'll find a new case study on Jaipur Rugs' innovative new global supply chain; updates to earlier editions' key cases; and up-to-the-minute information on the evolution of key industries such as wireless, agribusiness, healthcare, consumer goods, and finance. Prahalad also offers an up-to-date assessment of the key questions his ideas raised: Is there truly a market? Is there scale? Is there profit? Is there innovation? Is this a global opportunity? Five years ago, executives could be hopeful that the answers to these questions would be positive. Now, as Prahalad demonstrates, they can be certain of it.

C.K. Prahalad is Paul and Ruth McCracken Distinguished University Professor of Strategy at the Ross School of Business, The University of Michigan. He is a globally recognized management thinker. Times of London and Suntop Media elected him as the most influential management thinker alive today in 2007. He is coauthor of bestsellers in management such as Competing for the Future, The Future of Competition, and The New Age of Innovation. He has won the McKinsey Prize for the best article four times. He has received several honorary doctorates, including one from the University of London and the Stevens School of Technology. He has worked with CEOs and senior management at many of the world’s top companies. He is also a member of the Board of NCR Corporation, Pearson PLC., Hindustan Unilever Ltd., The World Resources Institute, and The Indus Entrepreneurs (TiE).

Preface     xiii

Guide to Readers     xx

Part I   Private Sector and Poverty: Progress During 2004-2009     1

New Introduction: Private Sector and Poverty: Progress During 2004-2009     3

Part II  The Original Text of the Book     25

Chapter 1          The Market at the Bottom of the Pyramid     27

Chapter 2     Products and Services for the BOP     47

Chapter 3     BOP: A Global Opportunity     73

Chapter 4     The Ecosystem for Wealth Creation     89

Chapter 5     Reducing Corruption: Transaction Governance Capacity     103

Chapter 6     Development as Social Transformation     125

Part III CEO Reactions to the Concept and the Book     141

Microsoft     143

Bharti Airtel--Empowering the Villages of India     145

Reuters Market Light and The Fortune at the Bottom of the Pyramid     147

Royal DSM     151

ING     153

GlaxoSmithKline     157

Unilever     159

Philips Electronics--Improving Health and Well-Being at the Base of the Pyramid     161

University of Maastricht     165

Acumen Fund     169

Part IV Case Studies and CEO Comments     171

Jaipur Rugs: Connecting Rural India to Global Markets     175

Casas Bahia: Retail for the Poor     207

CEMEX: Homes for the Poor     219

Hindustan Unilever: Lifebuoy Soap     249

Hindustan Unilever: Iodized Salt (Annapurna Salt)     261

Jaipur Foot: Prosthetics for the Poor     275

Aravind Eye Care: The Most Precious Gift     283

ICICI: Financial Services for the Poor     299

ITC e-Choupal: Technology for the Poor     321

Voxiva: Health Alerts for All     345

E+Co: Energy for Everyone     357

Biographies of the Researchers and Writers of the Success Case Studies from The Fortune at the Bottom of the Pyramid     373

Part V  Video Clips (on CD)

Jaipur Rugs

Casas Bahia

CEMEX

Annapurna Salt

Hindustan Lever Limited

Jaipur Foot

Aravind Eye Care

ICICI Bank

ITC e-Choupal

EID Parry

Voxiva

E+Co/Tecnosol

Andhra Pradesh

Index     385