BOP markets and strategies are proving resilient to the global economic downturn.A recent article on the Wall Street Journal (WSJ) shows that cell phones sales are going up among Indian rural population by at least 11 million new suscriptions in January 2009.
Rural users find the cell phones a critical tool to negotiate and sell their products at the best price possible.
Under Indian harsh, subtropucal climate, perishable goods as food and crops are extremely vulnerable to long trips at pedestrian speed.Before cell phones became available -in the last decade- , small farmers living on less than $ 1,000 dollars a year were at the mercy of the traders once they travelled to the closest market.
Temperature and uncertainity about the price in the next village gave grain traders the upper hand and farmers no option but to take the price or lose their crop.
C.K. Prahalad estimated in 2002 that farmers got an increase of average 45 % in the prices they could get for their products by just being able to check and bargain on their cell phone.
United Nations Millenium Goals program director, development economist Jeffrey Sachs, and other experts considered cell phones the single most influential technology in bringing people
out of extreme poverty.
Following Prahalad's advice, developed and developing -BRICM- countries might benefit from using the BOP markets as "labs" where innovative experimentation cab be tested to later transfer it to more affluent economies during times of crises.
Some of the key principles are:
1. Try innovative uses
2. Improve price-performance
3. Use simple, resilient technology
4. Package goods and services in smaller, less expensive sizes
5. Treat your client not as a consumer -the "end" of a value chain- but as a "prosumer", someone that might modify and use your products to add value, reduce costs and make a better living out of it.
The "virtuous circle" of helping clients help themselves instead of just maximizing short-term margins regardless of their future well-being is a key factor to consider both in good and hard times.
But in hard times, it becomes more evident.
How can we apply these lessons to our PII projects?
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References
- e-Choupal system
- Cell phones use in Mozambique
- Every Liberian wants a cell phone
- Iqbar Qadir: he power of cell phone to end poverty
- Jeffrey Sachs Says Financial Crisis Presents Opportunity for Asia -- Part 1
- The end of poverty: the "homework" of our generation
- Bellman, E. (2009) Rural India snaps up mobile phones. Wall Street Journal
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6 comments:
Ecoturism project has a very potential for the regional development, that a means, the opportunitys are very high in the employment rate, in other wise, rural comunnitis generate a social positive impacts for everyone, but we have some issues for the project, this ones are a weakness in the social, cultural and finance, working whith the poeple we found some troubles, like:
Inappropriate culture for business communities in environment business is zero, as the government subsidies provide a kind of vicious circle just give money to people so they take care of their community activities, it will not get the self-reliance among the communities, on the other side and taking the example of 1Google through his foundation donated three million shares with a value exceeding $ 900 million, encouraging both in Africa and Asia, the generation of small technology companies, calling to this creative gift. Promote certain types of creative financing can generate a sustainable development between the social self.
Low academic training to engage in business: Our goal as doctoral students will provide the tools necessary to build bridges in developing the skills of communities, such skills are the practices in their communities and knowledge of both financial literacy, such as administrative and technology.
I believe that to generate ecosystem between communities, formed the first roads of this ecosystem, with these, people with their skills in front of a market that is not local if not global, in which communities themselves can manage to at least two languages.
Girard Bernard, “El modelo Google una revolución administrativa” grupo editorial norma pag 280 capitulo 17
I want to give some example about and apportunity in the ecoturism project, some countries like Lebano has an violen political crisis and flareups of sectarian violence, Lebanon's brave experiment in eco-tourism is battered and bloodied but defiantly soldiers on.
A decade ago, it was a glittering vision -- a scheme to lure nature lovers to the Lebanese highlands, providing income to local people, nurturing the country's damaged environment and cementing national unity in one stroke.In the eastern Bekaa region near the Syrian border, financial help from the United States and Europe helped establish a project for encouraging families to come and enjoy the wildlife, staying in local hostels and employing local guides.
What about ecotourism project?
La sierrita, Moroncarit, Yavaros have a natural potencial, but some grugs men have encouraged the development of activities not permissible, this is a challenge to the authorities but also to communities, communities where poverty, lack of opportunity and economic backwardness are potential for damage to the rural economy, on the other hand The ecotourism project creates opportunities to care for the environment and regional development based on the experience of tourists, this virtuous circle provides a connection for the generation of rural enterprises that depend on an ecosystem where an articulated business environment is conducive to the lifting of the community and diversify the opportunities.
On the other hand, both in Lebanon and Mexico, countries with renewable natural resources have not considered the market of ecotourism as a development option, and this is due to lack of vision of the leaders in the doctorate must activities supporting the full benefit of the communities both socially and in economic terms.
http://www.eturbonews.com/3428/lebanons-eco-tourism-dream-survives-crisis
In all countries, developing activities that focus on the
social self is applied to most activities within the community, on the other hand, the economy is reactivated by rural communities for social development, on the other hand, people living in a virtuous environment for spiritual growth and material their communities.Tourism is one of the world's largest economic sectors. Ecotourism is its fastest growing component (United Nations World Tourism Organization 2007), and a promising strategy for sustainable development. Even in rural Central America and the Caribbean are in need of sustainable development and contain promising ecotourism sites. Ecotourism project will development the communiti for the people, in other wise, our project contribute to development based on ecological integrity, economic viability, and social justice.
Thanks for this blog entry - in fact, I've just started my business opportunity online nice tips.Happy February!
Millionaire maker
This is an example how poor people can have benefict about tecnology using cell phone in order to be more productive and take advantage of new a way to do business.
Therefore we can analyze two main ideas about this article and apply to the corridor of alternative tourism:
1. Tenhcnology as an strategy to be more productive. The most of organizations that is related with corridor in Sonora can use a big network of technology resources like system to manage small business, software to reserve hotels, restaurant or activities at the communities. In the other hand visitors can use this technology to get easy the travel and experience when they visit Sonora. In others words stakeholders can use technology to do more productive and increase costumer satisfaction.
2. Focus on people with less income. Is important to clear the idea that visitiors are people with high income and with a sofisticated life style, eventhough is possible to consider people that like to visit naturals areas but doesn’t have much money, therefore if we design some product to this kind of visitors, the small business can have a different source of income besides visitors from United State or Europe.
This two ideas is related with the elements of a business ecosystem: Market support, Logistic Support and technological Support and wath we have to do is design every element of ecosystem and prove step by step.
The Mexican Weightlifting Federation.
One of the best added values that
we can give to our customers when we sell a product or service is to help them in their business, think for them about their business and find different ways to help them.
A customer will be satisfied when receive a product according to specifications of quality and best price offered to him. But be agree to pay a higher price even further when we provide to him support in their strategy with their customers
Our project with the Mexican Weightlifting Federation has a market that include different types of clients and in some cases, we must considerate who are the customers of our customer.
One of the goal segments of our project are the governments who are looking to reach as many people as possible with promotion purposes and recognition of his work through sport.
In other cases, another customer segment who have the most legitimate purposes are government agencies aimed at preventing physical or mental health who are looking for lower costs for social programs according to disease prevention programs for health through sports.
In our project we should consider a strategy to reach the BOP market segment because it is the perfect prospect of our government customers and we can help to generate a successful system where they can strengthen their strategy. This could be part of the added value or maybe principal value and the reason to to pay and continue support this project and this sport (Weightlifting).
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