Marketing $100 Laptop Case Study
MARKETING $100 LAPTOP CASE STUDY
1. Why did Negroponte do what he did? Why was this necessary?
(Explain his motivation and the factors surrounding the genesis of the One Laptop Per Child (OLPC)
• After seeing the power off laptops firsthand in Cambodia, Negroponte decided to create an affordable device for use in the developing world. He wanted to create educational opportunities for the world’s poorest children by providing each child with a low cost laptop. This laptop will have educational software to provide children’s with otherwise unavailable technological learning opportunities.
2. What were the main marketing challenges and the non-marketing challenges confronting (OLPC)? (Discuss the issues related to the product and concept and the situational and social factors affecting it).
Marketing Challenge:
• Marketing a low-cost, lightweight laptop seemed contradiction to recent products that are lightweight and ultra-thin that were typically more expensive and harder to manufacture.
• Most children using $100 laptop would not have ready access to electricity
• Consumers criticizing OLPC for discounting the value of teacher training and curriculum development using the device.
• Governments opting out to put its resources toward traditional method of education
• Prices for the OLPC doesn’t seem to stay at $100 causing different “price floats”
• Competition like Intel launching it own cheaper laptop targeting developing nations as well. Offering enhanced capabilities and the ability to run version of Linux or Window XP
3. How well have they done in overcoming these challenges? (What decisions were made to help resolve the challenges the OLPC faced?)
OLPC overcame some of the challenges by:
• Keeping laptop at low-cost by outsourcing the major design work and key part of the operating systems to different countries.
• Due to the lack of electricity for these third world countries, OLPC design their product to work by
1. Why did Negroponte do what he did? Why was this necessary?
(Explain his motivation and the factors surrounding the genesis of the One Laptop Per Child (OLPC)
• After seeing the power off laptops firsthand in Cambodia, Negroponte decided to create an affordable device for use in the developing world. He wanted to create educational opportunities for the world’s poorest children by providing each child with a low cost laptop. This laptop will have educational software to provide children’s with otherwise unavailable technological learning opportunities.
2. What were the main marketing challenges and the non-marketing challenges confronting (OLPC)? (Discuss the issues related to the product and concept and the situational and social factors affecting it).
Marketing Challenge:
• Marketing a low-cost, lightweight laptop seemed contradiction to recent products that are lightweight and ultra-thin that were typically more expensive and harder to manufacture.
• Most children using $100 laptop would not have ready access to electricity
• Consumers criticizing OLPC for discounting the value of teacher training and curriculum development using the device.
• Governments opting out to put its resources toward traditional method of education
• Prices for the OLPC doesn’t seem to stay at $100 causing different “price floats”
• Competition like Intel launching it own cheaper laptop targeting developing nations as well. Offering enhanced capabilities and the ability to run version of Linux or Window XP
3. How well have they done in overcoming these challenges? (What decisions were made to help resolve the challenges the OLPC faced?)
OLPC overcame some of the challenges by:
• Keeping laptop at low-cost by outsourcing the major design work and key part of the operating systems to different countries.
• Due to the lack of electricity for these third world countries, OLPC design their product to work by