Question

According to C. K. Prahalad, what misconception leads international markets to ignore the bottom-of-the-pyramid markets?

a) Products developed for more affluent consumers are not appropriate for BOPMs.
b) Most BOPMs are geographically isolated and thus difficult to access.
c) Protective policies make BOPMs difficult to penetrate.
d) Exchange rate fluctuations make BOPMs very volatile.
e) Language and cultural barriers make BOPMs unattractive and sometimes hostile.

Answer 1

C. K. Prahalad's view is that the misconception of products developed for affluent consumers being inappropriate for bottom-of-the-pyramid markets causes international markets to overlook these areas, where significant opportunity for innovation and growth exists.

Step-by-step explanation:

According to C. K. Prahalad, the misconception that leads international markets to ignore the bottom-of-the-pyramid markets (BOPMs) is a) Products developed for more affluent consumers are not appropriate for BOPMs. This misconception underestimates the potential of BOPMs and assumes that products need to be downgraded or are otherwise unsuitable.

In fact, these markets represent a significant opportunity for innovation and growth by adapting products and business models to meet the unique needs and constraints of consumers in BOPMs. Contrary to misconceptions, tapping into BOPMs can lead to worthwhile ventures that are both profitable and beneficial to local communities.