Do such assumptions represent ethical challenges? Why, or why not

Sep 29th, 2015
DreamIt
Category:
Other
Price: $5 USD

Question description

Many legal standards exist that businesses are required to meet in order to ensure product safety. These standards tend to be well defined, and adherence is a generally accepted risk mitigation strategy. Less quantitative risks exist, often in the area of ethical behavior, and Table 2.2 enumerates assumptions often made about the large portion of the world living at or below the poverty line. 

Do such assumptions represent ethical challenges? Why, or why not?

TABLE 2.2 Challenging assumptions about the bottom of the pyramid

6566

Assumption

Reality – and opportunity

The poor have no purchasing power and do not represent a viable market

Although low income the sheer scale of this market makes it interesting. Additionally the poor often pay a premium for access to many goods and services – e.g. borrowing money, clean water, telecommunications and basic medicines – because they cannot address ‘mainstream’ channels like shops and banks. The innovation challenge is to offer low-cost, low-margin but high-quality goods and services across a potential market of 4 billion people.

The poor are not brand-conscious

Evidence suggests a high degree of brand and value consciousness – so if an entrepreneur can come up with a high-quality, low-cost solution it will be subject to hard testing in this market. Learning to deal with this can hep migrate to other markets – essentially the classic pattern of ‘disruptive innovation’.

The poor are hard to reach

By 2015 there are likely to be nearly 400 cities in the developing world with populations over 1 million and 23 with over 10 million. 30–40% of these will be poor – so the potential market access is considerable. Innovative thinking around distribution – via new networks or agents (such as the women village entrepreneurs used by Hindustan Lever in India or the ‘Avon ladies’ in rural Brazil) – can open up untapped markets.

The poor are unable to use and not interested in advanced technology

Experience with PC kiosks, low-cost mobile phone sharing and access to the Internet suggests that rates of take-up and sophistication of use are extremely fast amongst this group. In India the e-choupal (e-meeting place) set up by software company ITC enabled farmers to check prices for their products at the local markets and auction houses. Very shortly after that the same farmers were using the Web to access prices of their soybeans at the Chicago Board of Trade and strengthen their negotiating hand!


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Carnegie Mellon University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

5 Reviews


Summary
Quality
Communication
On Time
Value
ashleyisgod
Nov 30th, 2016
" Top quality work from this guy! I'll be back! "
Molly_Moon
Nov 8th, 2016
" AMAZING as always! "
Hemapathy
Oct 16th, 2016
" all I can say is wow very fast work, great work thanks "
BlueOcean
Oct 3rd, 2016
" Awesome! Exactly what I wanted. "
kevin12622
Sep 24th, 2016
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors