Serving the World`s Poor, Profitably

SERVING THE WORLD`S POOR, PROFITABLY 4

Servingthe World`s Poor, Profitably

Servingthe World`s Poor, Profitably

Thearticle provides a unique and viable perspective of entering theworld’s poorest markets despite their low economic situation. Theidea is noble because of the focus on the improvement of the lives ofbillions of people who are live in the loser economic class (Prahalad&amp Hammond,2003). The article effectively explores how to effectively serve thepeople at the bottom level of the economic stratification in asustainable business model. The business model of developing theworld, especially the developing countries through privateinvestments is possible and viable. The good thing with privateinvestment is that they will extend the services to the poor level ofthe economic pyramid, as long as it is motivated by returns in termsof profit.

Thevision presented by the article can be achieved through increasedentrepreneurial activity to spark economic growth in the developingcountries (Prahalad &ampHammond,2003). This is possible and can lead to sustainable economic growthand the creation of more jobs. In addition, investments and increasedincome will lead to increase in local and domestic demand that willpromote the growth of these economies. In addition, the increase inincome will open more opportunities for international trade. As aresult, economies will reduce poverty among the people and alleviatesocial evils and crimes associated with economically unstableeconomies.

However,the article does not provide clear motivations for the private sectorto invest in poorer markets. It is important to note that privateorganizations are motivated to make profits. While the poor economieshave untapped potential, they have low profit margins and demand forhigher capital investment. However, the solution of innovation andpromotion of the existing small businesses in the developingeconomies is a viable option. Despite the viability of the concept,the implementation calls for higher government support to the privatesector in these economies.

References

Prahalad,C.K., &amp Hammond, A. (2003). Servingthe world`s poor, profitably.Retrieved From, &lthttp://web.mit.edu/mit-africa/Archive/7269399.pdf&gtMarch 28, 2015