Nano : Fortune at the Bottom of the Pyramid ?
First of all , to start on a personal note : Had been away from my life(or should I say My blog for close to a month) with lot of things happening on the other side of my life. This would be my very first article in the New Year and by no means is ThoughtsPrevail dead 
and the article , which would mark the start of my New Year [of blogging] would be the People's Car : Nano
Just as Prof CK Prahalad says "There is fortune at the Bottom of the Pyramid [BOP]" and with close to 300 to 400 million people lying in the Middle Class arena, there is always a market of a product/service , which is targeted to this class of population.First it was Reliance which brought us the so called People's phone; ask any engaged person and the only way "They" would be communicating with each other is Reliance[cheap , convenient and great plans].Things changed and suddenly we have seen every person be it Paanwala, Saabziwala [vegetable seller] in India carrying a mobile phone !!!
Would the same revolution come with the so called People's car Nano. This is definitely a proud moment for India and IMHO, there is also a Social Entrepreneurship attached to the Nano.Social in the sense that it would make CAR accessible to the common man but at the same time, we need to ask ourselves "Is our Infrastructure ready for the Nano?". There are number of blogs and newspapers that have already mentioned about Nano, but one article in Economic Times was very interesting:
Small excerpt from the article :
and the article , which would mark the start of my New Year [of blogging] would be the People's Car : NanoJust as Prof CK Prahalad says "There is fortune at the Bottom of the Pyramid [BOP]" and with close to 300 to 400 million people lying in the Middle Class arena, there is always a market of a product/service , which is targeted to this class of population.First it was Reliance which brought us the so called People's phone; ask any engaged person and the only way "They" would be communicating with each other is Reliance[cheap , convenient and great plans].Things changed and suddenly we have seen every person be it Paanwala, Saabziwala [vegetable seller] in India carrying a mobile phone !!!
Would the same revolution come with the so called People's car Nano. This is definitely a proud moment for India and IMHO, there is also a Social Entrepreneurship attached to the Nano.Social in the sense that it would make CAR accessible to the common man but at the same time, we need to ask ourselves "Is our Infrastructure ready for the Nano?". There are number of blogs and newspapers that have already mentioned about Nano, but one article in Economic Times was very interesting:
Small excerpt from the article :
Clearly, populism and massive state subsidy can’t match a well thought out business strategy that has profit as the motive. And as CK Prahalad, the management guru who’s inspired many of the Tata Group’s low cost, affordability-based products and services, would readily point out that looking for fortune at the bottom of the pyramid is not an altruistic mission but a way to sustainable profitability.
As the article suggests , there is a lot of fortune at the BOP since, you get the Social Entrepreneurship angle working in your favor. There are already other automobile makers who have decided to join this bandwagon but for the time being Nano can enjoy the first Mover advantage .
First it was Reliance , Air Deccan and now it is Tata's Nano who have hit the BOP , so now only time and middle class would decide the fate of the Nano...till that time, let us keep our fingers crossed and hope that this Nano at least fares well than the rotten part of Apple [ the Nano ]
.First it was Reliance , Air Deccan and now it is Tata's Nano who have hit the BOP , so now only time and middle class would decide the fate of the Nano...till that time, let us keep our fingers crossed and hope that this Nano at least fares well than the rotten part of Apple [ the Nano ]
Labels: Business, Entrepreneurship, Social Entrepreneurship
posted by Himanshu Sheth @ 1/13/2008 11:57:00 PM
17 Comments
17 Comments:
Welcome back and a nice article.
Hey,
@Manish:Thanks and hope to see you more on my blog :)
-Himanshu Sheth
rightly said himanshu. It is the vision that makes the differnece. Vision of dirubai ambani made a reliance. similarly ratan vision "NANO".
Good to see u on track again. We had our interactions in wikicamp. After long time i made my personal blog site http://simba.in/
Hey,
@Saran:Thanks for visiting my blog.Yes,it took me some time(or should I say months to come back on track) :) IMHO, NANO would make India proud and I am sure I would also be one of the customer's of NANO :)
Would also blogroll you in my friend's section!!!
-Himanshu Sheth
Interesting Post Himanshu. I truly believe that as far as the infrastructure in India is concerned, we will not be going the way people in the west go. In India growth and demand will become an agent for change and slowly we shall see things moving.
Cheers
Vaibhav
Helping laymen become technology enthusiast at http://technofriends.wordpress.com
Welcome Back..Himanshu,
I just started reading Prof.Prahalad's book BOP and as you said, yes Nano is a real social entrepreneurial debut. I think more and more products and services should comein to the commom man's affordable level.
- Anbusivam
Also I read an article in times about this NANO which hopefully replace the Auto's/rickshaw's that we hav today in india!
Good Start for a Great Year
Happy new year! :)
Hey,
@Vaibhav and @Siva: Good to see you back on my blog :) Let's see how NANO fares in the market :)
-Himanshu Sheth
Hey,
@Lakshman : It would be a dreadful scene if NANO replaces Auto's....But yes, if that happens than we would be on the VERGE to a LARGE change!!!
-Himanshu Sheth
well its a 624 cc engine which produces 33 hp.its not automatic. i think the car looks sweet. but its onli 33 bhp i wonder if it can drive up a steep hill with 4 people. did you hear the words of RATAN TATA “A promise is a promise and that is what is delivered” I kinda admire him for that
Hey,
@Rambhai: Welcome to my blog :) I agree with you and Tata[like Ambani] has kept promises and hence the hopes of millions of Indians alive :)
-Himanshu Sheth
Agree on consideration that Nano is a real social entrepreneurial presentation nowadays. But let us also be reminded that after a year of launching a new product from them, another new and more innovative product will come. : -)
Hey,
@Eyts: Agree with you but the initial movement is provided by Nano just like Reliance was responsible for bringing low cost phones to India.
Now I think I can surely afford keeping a car :)
-Himanshu Sheth
Himanshu Sheth@: Hahaha.. that's my realization and observation. But it is also advantage because not all people can afford.
-eyts here!-
Hey,
@Cell Phone Cases:
Definitely,it would strike since many people in India cannot afford cars and don't have one(including me).
And if more products come,prices would still come down which is again an advantage.Such Brand Battles are always good for the consumers :)
-Himanshu Sheth
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