E-commerce : The Backside of Pyramid Method




For hundreds of years and many of the many years within the 20th century (i.e when pc used to be invented) get right of entry to and verbal exchange used to be the software of wealthy and extremely wealthy folks, prohibitively expansive to ‘now not so wealthy’ and ‘certainly not wealthy’ other folks. All advertising analysis and construction used to be targeted at the 20% of the marketplace according to the control concept 80:20, ignoring the huge four billion people who find themselves on the backside of the pyramid( learn Fortune on the Backside of Pyramid by way of C.Okay. Prahalad, Wharton Publishing).

In 1990s, Web got here alongside and alter the paradigm of entire international marketplace. As a result of right here we’ve got a useful tool “Web” an overly environment friendly, very potent to penetrate the sooner idea impregnable marketplace sec. For many if the time it’s the publicity to the outer global and knowledge is important to make any choice and expansion of any segment of society or a part of global. Web is enjoying that position very successfully.

Web is a Mass product. Right here energy lies within the hand of people, wealthy or now not so wealthy(This terminology is taken from Fortune on the Backside of Pyramid through C.Okay. Prahalad, Wharton Publishing).

Basic concept of marketplace states

(i) Most sensible finish marketplace is worth pushed.

(ii) Backside finish marketplace is quantity pushed.

Thru those two anomaly, we will be able to obviously acknowledge that Web firms are that specialize in the second one way and that’s what CK Prahalad name Backside of Pyramid(BOP) means in his trail breaking guide Fortune on the Backside of Pyramid.

I will be able to give a large listing of such firms, however as an example take some shining stars of nowadays Web financial system.

(i) ebay.com

(ii) aol.com

(iii) clickbank.com

(iv) Google.com

We will be able to learn about the Mom of all seek engine Google and its option to BOP.

Shall we examine the Google technique and its behemoth competition( smartly now not nowadays, however in formative days of Google when it topic maximum.) Google is a seek engine in accordance with Ppc(PPC) solution to the web financial system. In formative days, Google finished precisely what others idea and smartly known via the Gurus that the type isn’t viable and Google might be doomed to graveyard.

Maximum of Dot Coms or brick and mortar firms on web have been earning money for promoting. They price for the promoting area they supply to the advertiser and price them for a hard and fast period and in addition these kind of pay as you go most effective. This way used to be already imminently adopted in TV promoting and to some degree very a success. Advertisers didn’t had any choices. For them it used to be darkish area to leap into. They didn’t had any regulate even after paying good-looking sum for area on Web.

See the opposite aspect of the coin. The shopper( technically customer) weren’t a part of revolution. Even though they have been, they have been was most effective exploited for producing massive benefit for corporations running at the Web.

Google got here to foray with a refreshing taste and an overly unusual method to the marketplace.

1. No Photographs on its primary web page. ( there’s choice to be had in different pages however now not very talked-about.)

2. Device and products and services for the average other folks.

three. Loose for all( even someday for advertisers additionally)

See the place is the cash? I assume 90% would now not see any or many.

Google unfold its wings on web thru word-of-mouth advertising and holding a intense center of attention at the not unusual folks the use of web. Within the procedure Google evolved it owns advertising and income era style with empowering the average folks, who worship Google( I will be able to be counted certainly one of them).Google invented many new type which used to be by no means idea ahead of.

(i) Google AdSense

(ii) Google AdWords

(iii) Froogle ( very similar to ebay.com however loose for all.)

(iv) Google Seek

Seeing deep into Google technique and option to web financial system we will be able to outline two issues.

(1) Center of attention on not unusual other folks in giant quantity in relation to buying energy

(2) Within the procedure give extra keep an eye on of their palms, empower them to generate extra buying energy and addiction to lend a hand your self in addition to the business.

See two very backside degree examples.

(1) Jon Gales, the landlord of the http://www.mobiletracker.web makes as regards to $5000 per 30 days simply by the use of Google adsense. Take realize, he’s simply a cheerful move fortunate kid of 19 years.

(2) For small time individuals who need extra gross sales to be generated for his or her small time industry makes use of Google AdWords and Froogle. Despite the fact that they don’t any industry product, they may be able to sale any person else product and feature a good-looking cash in trade for running for any person else at their very own house.

Does it make an organization commercially viable? Don’t question me. Watch it.

Seth Gobin a widely recognized web advertising advisor and previous Yahoo worker, was doubtful about Google’s prospect. Now not anymore “ They have got created the primary new and efficient Advert medium in remaining 50 years. It’s sensible” He says.

Napolean hill, writer of Regulation of good fortune state in his guide,” No guy can upward push to reputation and fortune with out wearing others in conjunction with him. It’s merely cannot be executed.”

It takes steady onerous paintings with nice collection of innovation in product designe, procedure innovation and advertising and an extended duration to succeed in ( in mature financial system or marketplace) the place Google is lately.

Google 6 yr $321mn

EBay nine yr $322mn

Yahoo 10 yr $260mn

Amazon nine yr $114mn

In his guide “ The fortune on the Backside of Pyramid” C.Okay. Prahalad state,”…..what is wanted is a greater way to lend a hand deficient, an method that comes to partnering with them to innovate and succeed in sustainable win-win situations the place the deficient are actively engaged and on the similar time, the corporations offering product and products and services to them are winning.”

I settle for not unusual other folks on web don’t seem to be deficient. However see into deep that means of C.Okay. Prahalad observation,”- ……the place the deficient are actively engaged and on the similar time………..”. That’s what e-commerce type I’m speaking all about. They don’t seem to be deficient however they’re lively in a position to switch their purchasing conduct. Purchasing conduct trade is probably the most superior milestone nonetheless to succeed in within the e-commerce to in reality blast off the web financial system. In keeping with Napolean Hill, you wish to have to lend a hand the average web people to peer what web can do for them.

Gil Penchina, vice-president, eBay Global state,” It’s all about getting extra folks at the gadget(eBay). Other folks on web apply quite simple gadget. They get on-line virtually all the time as a result of they would like e-mail, then they begin studying information, then they store. When they worth in buying groceries, they store many times. That’s once they understand they may be able to promote too.”

Via actively involving not unusual people they’re going to get extra agree with into e-commerce. To succeed in this superb fee of expansion, e-commerce group has to simply accept the “inclusive Capitalism” method. Not unusual Web folks want to be given a large alternative to faucet into the superior giant time alternative on web. Consistent with CK Prahalad, to faucet into BOP phase “ Believe is prerequisite”. Giant company or small one want to construct this bridge of accept as true with to faucet into this giant quantity marketplace phase.

In case of Google, it’s well-known for it unconventional means and infamously depended on for unorthodox control way of its founders Lary Web page and Sergey Brin. Google simply don’t contain on integrity for benefit in its seek effects. Its consumer can all the time believe Google for its integrity to obtain complete make stronger from Google for his or her small or giant industry.

Am I turns out too head over heels in love with Google? Consider m, It’s not that i am on my own.


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This analysis paintings for this document is completed by way of Mr. Arvind Kumar, founder, www.Nuttymarketer.com Chances are you’ll succeed in him at arvind@nuttymarketer.com .


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