CK Prahalad talks to Forbes India about how the concept of the bottom of the pyramid has evolved over the years
Name: C.K. Prahalad
Age: 68 Designation: Paul and Ruth McCracken Distinguished University Professor, Ross School of Business, The University of MichiganWork History: Member of faculty at the University of Michigan from 1977. Before that he taught at IIM-Ahmedabad. His first job was at the Union Carbide battery plantAchievements: A Padma Bhushan awardee, Prahalad is the author of several bestsellers like Competing for the Future (with Gary Hamel), The Future of Competition (with Venkat Ramaswamy) and The Fortune at the Bottom of the Pyramid . According to Thinkers 50, he is the most influential business thinker alive.Hobbies: Travel, long walks and reading
One of the debates from the beginning has been whether it is fortune at the BOP vis-a-vis fortune for the BOP. Where do your thoughts on this stand?
It is a silly debate. It’s not either-or. If a micro-finance institution (MFI) lends at 20 percent interest and makes money, it’s fortune for the MFI. But if the alternative for the poor is to borrow at 150 percent, is it a fortune for the borrower as well? She is reducing her interest burden. No business can sustain itself if there is no value created for the consumer. If both parties don’t get value, there is no transaction. That’s a truism in business.
(This story appears in the 25 September, 2009 issue of Forbes India. To visit our Archives, click here.)