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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, â€œIn 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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