Compose a 1750 words assignment on fortune at bottom of the pyramid. Needs to be plagiarism free! However, this often forgotten, the bottom of the social hierarchy, the fourth sector has its own set of treasures (Bendell 2005, Viscio and Pasternack 1996). The poor have within them the basic cultural knowledge for innovation and their knowledge of environmental sustainability is quite intimate (Pralahad and Hart 2002). Hence a more full-fledged engagement of this sector within the economy both as producers and consumers will result in a responsible society, marketing strategies that are culturally perceptive and overall will yield a healthy economy. Through these yields, the fourth sector might even realize their importance as a generator of wealth, which will naturally lead to their self-determination and empowerment. By harnessing these yields, the fourth tier can very much realize successes similar to those of India and China, opines Prahalad and Hart. However, here it can be argued that if cultural knowledge is valued as intellect, then the fourth sector holds key only for a more integrated world economy with greater participation and products and services that are innovative and ecologically safe, economies that can avoid the mistakes generally made by the developed countries.
This argument that the fourth sector holds the key to economic development and social transformation has been countered on several levels, especially by Rost, Ydren, and Gustaffen (2006). Most of the points that have been illuminated in these counter-arguments have been matters of definition. Moreover, the trio, assert that the poor may simply be unwilling or lack the resources to accomplish the transformational business model, put forward by Dr. Prahalad.
Therefore, based upon the elements of Prahalad’s business model suggestion and the counter-arguments, this paper has been devised so as to focus on the fine points, infer relevant data from supplementary reports and argue that given the opportunity, the fourth sector would not only reinvent the products that are marketed but also the marketing aspect and the method of production. Given time the model will definitely convert itself to a more sustainable one, both in terms of performance and ecological standards.
The fourth sector that makes up for poor people can be defined in many ways (Rost, Ydren, and Gustaffsen 12-15). The most convenient way to define and measure their income is in comparison to U.S. dollars. The global statistics show an estimated number of 4 billion people living on 2 dollars or less per day (Rost, Ydren, and Gustaffsen 1). These people form the fourth and the hidden sector that makes the bottom of the economic pyramid (BOP) (Rost, Ydren, and Gustaffsen 1, Prahalad, 2002). This fourth sector does not only represent the number of people earning 2 dollars or less per day but more importantly, this fourth tier represents a culturally informed knowledge base, a sustainable lifestyle, and innovation.