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We need more Nanos, Amuls, Jaipur Rugs: Prof C K Prahlad
MBAUniverse.com News Bureau
Mar 26, 2009
When the corporate world is
engaged in a debate over finding feasible solutions to come
out of the current economic crisis, management guru Prof. C
K Prahlad suggests innovative business models like Nano,
Jaipur Rugs, Amul etc to move out from the crisis.
While encouraging business leaders to adopt innovative ideas
by referring to some of the success stories of top Indian
companies, Prof. Prahlad said, “India has the ability to
become a hub of innovations. The business models adopted by
some of the Indian companies have repeatedly proved that
through innovation profit can be maximized; and they have
ensured that the quality product can be delivered to masses
at low prices.
For instance, Tata’s Nano, Airtel, Amul Jaipur Rugs,
Aravind Eye Care, Jaipur Foot and many others are the result
of the innovations. One thing is common amongst all the
above-mentioned names, and that is the conceptualization of
their business model as per the needs of the people at the
bottom of the pyramid.”
He further said, “Business leaders should take lessons from
the success of these names as they set new trends for
new-generation business leaders to come. They must
understand that profit is not only made by fixing high
prices and providing luxury goods, rather one can make
profit by reasonable quality products at a price which is
affordable for the majority of the population.”
Talking about Jaipur Rugs, Dr Prahlad said, “In just a
few years, Jaipur Rugs has grown to become one of the
leading providers of hand-woven rugs from India. It has
40,000 artisans working in jaipur. It is importing wool from
New Zealand and Australia, and selling the finished products
to many overseas countries including the United States.
Through its vertically integrated business structure, it is
able to control products from conception to delivery. This
method allows it to offer an exceptionally high quality and
consistent product.”
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