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Marketing the $100 Laptop

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MBA 6307 - High Tech Marketing …

MBA 6307 - High Tech Marketing
Marketing the $100 Laptop
January 16, 2010

Published in Business , Technology
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Transcript

  • 1. Marketing the $100 Laptop
    BRINGING TECHNOLOGY TO THE MASSES
    High-Tech Marketing
    MBA 6307
    Paulina Baytler
    Chris Filly
    Christopher Serio
  • 2. Case Overview
    • Professor Nicholas Negroponte
    • 3. MIT Media Lab – The $100 Laptop
    • 4. Expose children in developing nations to technology. One laptop per child.
    • 5. Idea Launch – 2003
    • 6. Non-Profit OLPC (One-Laptop Per Child) – 2005
    • 7. Target Market – “The Next Billion”
    • 8. Developing Economies – BRIC
    • 9. Benchmark
    • 10. Five-Million Orders from BRIC to begin production
  • Problem Statement
    • Is the Vision Still Viable?
    • 11. Is Five-Million a Realistic Benchmark
    • 12. Is a Kid-Centric Model the correct model
    • 13. Large players competing fiercely
    • 14. This became a race to penetrate these emerging markets.
    • 15. Education was the way to get the foot in the door. Cheap computers were the key. Not designed with Children in mind.
  • Main Issues
    • Marketing challenges
    Dealing with unique demands and circumstances
    • Supplier and production challenges
    • 16. Creating an inexpensive laptop that works
    • 17. Design and concept challenges
    • 18. What is the best way to bring technology to emerging economies?
  • Marketing Challenges
    Government buyers
    • Unique demands
    • 19. Access to open R&D
    • 20. Multiple competing issues (health, crime, etc…)
    • 21. Budget restrictions
    Created for children, but marketed to Gov.
    Lack of classrooms, teachers, and textbooks
    The majority of children are not in school
  • 22. Supplier and Production Challenges
    Supply chain issues
    • 800 different parts, suppliers around the world
    Open source R&D
    • Pros:
    Web forum created for multiple designers
    Lowers cost and has ability to move quickly
    • Cons:
    Lack of intellectual property
    Transparent to critics/buyers/competitors
  • 23. Design Challenges
    Hardware
    • Designed with teachers in mind
    • 24. Designed with children in mind
    • 25. Designed for emerging business
    Software
    • Linux vs. Windows
    • 26. Elementary technology vs. complex technology
  • Concept Challenges
    Educating the teachers vs. providing basic technology for children.
    Assumption that elementary programming will lead to technology fluency.
    Convincing governments that…
    technology will greatly improve education.
    technology will alleviate suffering
  • 27. Porter’s 5 Force Analysis
  • 28. Porter’s 5 Force Analysis
    Barrier to Entry
    Barriers to Entry – Low
    • Open source technology
    • 29. Commoditized products
    Supplier Power – Low
    • 800 different parts, no customization
    Threat of Substitutes – Low
    • Leveraging existing infrastructure
    • 30. Wireless-centric vs. PC-centric
    Supplier Power
    Threat of Substitute
  • 31. Porter’s 5 Force Analysis
    Buyer Power - High
    • Selling to governments in blocks
    Modeling for the Consumer
    Marketing to the Governments
    Internal Competition – High
    • Intel – Classmate PC: World Ahead Program
    • 32. Encore Software – Mobilis
    Indian Government and Brazil’s Education Ministry
    • AMD – Personal Internet Communicator
    Rivalry
    Buyer Power
  • 33. Analysis of Competition
    Intel – Classmate PC
    • Loaded with education software
    • 34. Positioned towards educating teachers and schools
    Encore Software – Mobilis
    • Hybrid PDA / PC
    • 35. Touch screen with integrated keyboard
    • 36. Designed for “on-field” applications
    AMD – Personal Internet Communicator
    • Consumers device for people in global, high-growth markets
    • 37. Positioned for “first-time” technology users
  • Competitive Analysis
    OLPC
    Positioned to expose children to technology
    Education software loaded onto a server (extra cost)
    Non-Profit!
    Classmate PC (Intel)
    • Loaded with education software
    • 38. Positioned towards educating teachers and schools
  • Competitive Analysis
    Personal Internet Connection (AMD):
    • Consumers device for people in global, high-growth markets
    • 39. Positioned for “first-time” technology users
    Mobilis (Encore):
    • Hybrid PDA / PC
    • 40. Touch screen with integrated keyboard
    • 41. Designed for “on-field” applications
  • Proposed Alternatives
    Stay the course
    Seek fund-raising, donations, and sponsorship
    Moving to a mobile centric model
    Pre-existing infrastructure
    Move to Windows based system
    Teacher-centric Intel based model
    Change the benchmark
    Selling in lower quantity and proving product value
  • 42.
  • 43.
  • 44.
  • 45.
  • 46. Recommendations
    We recommend that OLPC lowers their benchmark and order requirements
    This will allow them to prove the benefits of their solution  make larger sales
    Need to move faster against aggressive competitors
    This may allow them to focus on smaller emerging markets other than BRIC
    More in line with their original vision
  • 47. Action Plan
    Determine the lowest order amount possible without HUGE increases in price
    Identify new potential markets that can afford lower purchase requirements
    Conduct research proving effectiveness of the OLPC solution (and deficiency of competitors)
    Build a stronger case for multi-million unit sales
  • 48. Conclusion