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Mgmt Literature

Mgmt Literature. Course. OBJECTIVE To familiarize students with management articles on various contemporary subjects PEDAGOGY Discussing Management cocepts and issues published in various journals.

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Mgmt Literature

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  1. Mgmt Literature

  2. Course OBJECTIVE • To familiarize students with management articles on various contemporary subjects PEDAGOGY • Discussing Management cocepts and issues published in various journals. • Discussing contemporary management stories published in various journals (e.g. Satyam fraud, Mumbai Dabbawala, IPL Commerce, Journey of Nano, Subprime lending crisis, Education system today, Sulabh, Nuclear Deals, Stock markets – NSE&BSE, Global Warming, Carbon credit trading etc. ) • Case studies and case analysis – cases published in leading magazines such as HBR, and reputed Indian management journals

  3. Serving the BOP Market profitably byPrahlad and Hammond

  4. Globe – perceived market size • Global population estimated upward of 6 Billions (600 crores). More than 450 Billion people live in BOP, not considered as ‘market’ by most of the businesses, and hence not targeted. • Global market strata – • high PP(30 crore), • ok PP-price sensitive(100 cr) and • perceived low PP(470 crore). • Global firms have created wealth around the world. Given a choice, assuming market size is limitless –whom do they like to serve? Whom do they serve – if they need to expand the market?

  5. Globe – potential market size • All products / services target 1 billion market. • What is the outcome? More and more of look alike products targeting a narrow segment. Fierce competition. More and more expense towards marketing, brand building, channel development, selling incentives. • What can the global firms do differently? • Should the market size remain limited? • Is there an opportunity to expand the Market to include BOP? • What will be market size if BOP is also included. • Are BOP problems for government / aid agencies or business opportunities? Why cant they be a part of organ ized market and be profitable business opportunity?

  6. BOP– high cost economy • The perception – poor can not pay for all their service. Let us look at some statistics :

  7. BOP– high cost economy • Pay 4-100 times more for drinking water. • Spend more on medical – to cope up with diseases due to lack of basic hygiene. • Credit – unavailable from organized sector – not considered credit worthy – pay more than 600% interest, rich having access to organized sector pay far less 12-18%. • Connectivity – pay higher transaction cost than rich - do not own telephone – do not have access to cheapest mode of telecom – attractive schemes/internet, as they use public phone. • Grocery – do not access low cost items at supermarkets – depends on local grocery store – higher cost. • Remittance cost – 5% vis-à-vis nil for rich people. • The –reality - the poor is under served at high transaction cost. We make them poorer by not providing access to service available to us.

  8. BOP opportunity • The informal economy which serves the BOP – unorganized system full of inefficiency, and intermediaries –exploit the system. • Creating real market amongst the students can change the situation – benefits of organized sector should percolate to BOP consumers – win-win situation. • Micro-finance organization charging 100% - exploiting or helping the poor? When we compare it with no lending (by banks) or 600% lending (local lenders) ? • If large corporations like Citibank enter this segment in a big way even by charging high interest rate -will it be helping or exploiting? • Tap the purchasing power of poor to provide him quality, not to exploit him.

  9. Entering untapped market • Another segment – Rural market – good purchasing power, harder to reach. • Should we spend all our efforts, talent, technology, marketing spend, etc. to improve and fight for 20% marketsize, or expand the market itself? • Can ICT and existing logistics play a major role in connecting untapped groups to mainstream market.

  10. Some initiatives…… • Andhra – Swayam Krishi sangam – smart card as bank passbook – had no difficulty in understanding how it works. • Grameen Telecom- Illiterate village phone entrepreneurs – never touched a telephone earlier, could memorize country codes and help customer call anywhere in world. • N-Logue- development of low cost connectivity model – with academic – industry collaboration • Andhra coastal-local women trained to use real time satellite images of fish concentration and successfully direct their husbands to right spot.

  11. examples • ITC e-choupal – 700+ kiosks, covering 3500+ villages, 400+ farmers soya, coffee, shrimp, wheat farmers – imparting latest information on weather and best practices in farming. E-procurement enabled, to improve price realization and transaction cost. • Tara kendra to provide education, information and connectivity with large corporations using a franchise model. • Aakashganga, to improve productivity and profitability of dairy cooperatives • Cane Management of EID –farmers advisory services for complete life cycle – sowing to harvesting, irrigation management, land preparation, crop diagnostics etc.

  12. conclusion • Tapping the market requires innovation, experimentation and right mindset. It requires synergy of development and business objectives • Create reach, scale, resources to bring BOP community to market. • Expand the social benefit available to other strata to BOP community • It is not social development – it is expanding market and market size for profit – and benefiting the society also. • Link informal and established economy to create a large market space. ICT can play a major role in this integration.

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