Jaipur Rugs: Connecting Rural India to Global Markets

by: C.K. Prahalad

Publication Date: November 3, 2009
Length: 22 pages
Product ID#: 1-428-849

Core Disciplines: Base of the Pyramid, International Business, Strategy & Management

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Teaching Note

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The Jaipur Rugs case explores how a company can benefit the poor by connecting them with global markets. Jaipur Rugs makes this connection by building and orchestrating a global supply chain on a massive scale—one focused on developing human capability and skills at the grassroots level, providing steady incomes for rural men and women in the most depressed parts of India, and connecting them with markets of the rich, such as the United States. Thousands of independent workers are organized to consistently produce a very high quality product, on a complex, decentralized basis, through a unique system of organization. Jaipur Rugs provides a unique and dynamic example of how a profitable commercial connection between the poor and the rich—across the world—can be done.

Teaching Objectives

After reading and discussing the material, students should:

  • describe appropriate business terms and principles approriate to this case,
  • apply critical concepts from earlier learning to define a solution to the case,
  • successfully articulate data and information in support of the solution proposed,
  • critically analyze and discuss other responses and solutions to the case,
  • draw lessons from the case analysis,
  • generalize the learnings of this case to other business challenges and decisions in organizations other than the one analyzed in this case study,
  • demonstrate leadership and scholarship in analysis.