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Marketing the $100 Laptop<br />BRINGING TECHNOLOGY TO THE MASSES<br />High-Tech Marketing<br />MBA 6307<br />Paulina Baytl...
Case Overview<br /><ul><li> Professor Nicholas Negroponte
 MIT Media Lab – The $100 Laptop
Expose children in developing nations to technology.  One laptop per child.
 Idea Launch – 2003
 Non-Profit OLPC (One-Laptop Per Child) – 2005
 Target Market – “The Next Billion”
 Developing Economies – BRIC
 Benchmark
 Five-Million Orders from BRIC to begin production</li></li></ul><li>Problem Statement<br /><ul><li> Is the Vision Still V...
 Is Five-Million a Realistic Benchmark
Is a Kid-Centric Model the correct model
Large players competing fiercely
This became a race to penetrate these emerging markets.
Education was the way to get the foot in the door.  Cheap computers were the key.  Not designed with Children in mind.</li...
Creating an inexpensive laptop that works
Design and concept challenges
What is the best way to bring technology to emerging economies?</li></li></ul><li>Marketing Challenges<br />Government buy...
Access to open R&D
Multiple competing issues  (health, crime, etc…)
Budget restrictions</li></ul>Created for children, but marketed to Gov.<br />Lack of classrooms, teachers, and textbooks<b...
Supplier and Production Challenges<br />Supply chain issues<br /><ul><li>800 different parts, suppliers around the world</...
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Marketing the $100 Laptop

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

Published in: Business, Technology

Marketing the $100 Laptop

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

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