Ten years ago, the late C . K . Prahalad and Allen Hammond described the potential benefits of creating viable products and services for the 4 billion people who earn less than $ 2 0 0 0 per year. This potential has become even more alluring, given the higher birth rate in poorer nations. But money is in short supply for the bottom – of – the – pyramid customers, so companies need to employ frugal innovation if their products are to offer the right value proposition. This article highlights the issues that companies need to manage well to succeed with frugal innovation.
Using the above statement discuss with examples, the six ( 6 ) principles of frugal innovation as proposed by Puranam and their importance to the current world economic climate
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