The so called contradictions highlighted by Prof Karnani & Prof Prahalad are nothing but friction in settling the financial (call it sustainability) matrix & Social matrix at the same time.

 In the short term, they may look divergent objectives and rarely the two yardsticks have ever been achieved by a single entity; only at hindsight we realise, neglect of one matrix is a natural failure of the other. 

 To get a better picture, lets join in some of the dots : 

•       This “BOP” articulation has at least set the ball rolling in widening the boundaries of the perceived consuming class. Both may debate on the numbers, but even the least common figure is substantial to investigate, invest  & subsequently trickle down.
•  The learning curve is not linear. - In India Coca cola with Rs 5/- bottles, Amul ice cream  with Rs 2/- cones ,did initially fail but all have reconfigured the market & on the net have reached the market which was thought previously as in accessible.  We are still at the early stages in the learning curve.
•  Price to Quality equation changes rapidly with competition.  Nirma’s  low quality powder does no more holds the commanding market share . neither has Surf regained its lost glory but has helped segment the market better & thus increasing the over all market size.  The challenge is change the ‘price to quality equation’ without considerably sacrificing either of them. Japan Auto makers challenged the then unthinkable replacement of large car concept & Today nifty, & fuel-efficient cars dominate. The initial impetus for change to small cars was from their home base. Does anyone finds the small car shoddy?
•  Casa Bahia’s affordable strategy by offering consumer loans may scheme the poor, lets not forget LIFE is still the best learning university to help him make a rational choice. The ‘ones bitten twice shy’ Poor will learn to prioritise & budget the consumption. It is certainly contentious view, difficult for the opinion makers to express it. But Previous experiences are biggest influence on the current decision-making.
•  Exposure to quality product sets a benchmark and aspiration to achieve it.  Many are poor due to lack of opportunity, but some are also due to lack of will to change their current status quo.  Debates like these will help at least assert the existence of the approach or need to serve a wider market & hopefully spark more innovations in serving the poor.

Thanks Prof Karnani & Prof Prahalad you may seem to talk of the other sides of the coin.  What matters us is the COIN.