The Product Strategy

& Position of

Low-Priced Computers

Reporter: Charlotte Hsu

Mobile can be Simple

The structure of this report

Why Low-Priced

The development of

low-priced notebook is right for Taiwanese computer

Consumption Pyramid Of Laptop

The development strategy of marketCreating cake more than Occupying cake

The comparison of product strategy and position

between OLPC and EeePC

The comparison between the three

main mobile product categories

Hundred-Dollar Laptop Challenges Thousand-Dollar Laptop

Wave for simplicity

The Conclusion

Why Low-Priced

• Good chance to promote Taiwanese Brand and to use strength of computer industry chain.

• Presenting the practical performance of Taiwanese IT business low-priced design and production ability.

• As an approach for the Taiwanese brand to enter the world.

• Low-priced will bring more widespread digital-applied market.

• Leading the related low-priced application development and change.

The development of

low-priced notebook is right for

Taiwanese computer

• Taiwan has the energy of end product design to explore revolutionary

low-priced laptop.

• From the high-level design of computer, the brand recognition from

end-consumer market, the Taiwanese computer can’t compare with

the synergy of First International Brand.

• Taiwan needs more time and effort to conduct the high-level laptop;

comparably, it’s easier to promote the low-priced laptop.

Consumption Pyramid Of Laptop

Top Laptop

B5 Size NB

UMPC

OLPC EeePC

Ordinary Laptop

(First Laptop)

Highest

Lowest

The comparison of product strategy and position

between OLPC and EeePC

Comparison OLPC EeePC

First Market

Area

Computer-underdevelopment region

Uganda , Brazil , Libya , Thailand, Pakistan,

Argentina, Nigeria

Computer-widespread

region

Taiwan, USA, Australia, China,

German, France, Italy

Main Selling

Place

Not selling to ordinary market presently

Adopting the intergovernmental

cooperation

Selling to ordinary consumption

market

B-C Selling and service

Main Target

Customer

The third-world poor children

Mainly for pupils

Ordinary customers of developed

countries

Electronic

Design

Adopting the uniform design or changing

the design according to different nation’s

requirement

Several levels and operating

systems for customers to choose

Resource: Abstracted from MIC, 2007

Speeding up the

global widespread

application of Laptops,

transforming the users of

low-priced computers to

become normal users.

Making people

without laptops start

to use it in an easy

way. Such as: Elderly

persons, housewives,

and students with

desktops.

Low-priced laptops advance

the time for people to use

computer.

For people already with

computer, the low-priced

laptop can be a mobile sub-

computer.

The development strategy of MarketCreating cake more than Occupying cake

Resource: Charlotte 2007

OLPC stands on the stage of

promoting public good of

education to proceed

EeePC stands as a killer

application product to enter

the untouched market.

The comparison between the three main

mobile product categories

Product category

Comparison

Category

B5 Size computer

UMPC

OLPC

EeePC

PDA

Smartphone

Mobile Function Complete With more useful

functions than PDA and

Smartphone

Limited but useful as a

well-functioned cell phone

Price Highest With price advantage

than B5 Size computer

and UMPC

With price advantage than

B5 Size computer and

UMPC, but not cheaper

than OLPC and EeePC

Mobile Size Good Good Best

(but limited functions)

Equipment Best With the convenient

control characteristics of

Laptop

Not with the keyboard,

mouse, USB, VGA

Resource: Charlotte, 2007

Hundred-Dollar Computer challenges

Thousand-Dollar Computer

B5 Size NB and UMPC will be most threatened by low-priced computers

• With same mobile size

• With enough functions to be mobile

• With price advantage to be a sub-notebook

• With less pressure to carry everywhere

(Being cheaper, being safer. Like the customs inspection)

Wave for Simplicity

• Two Strengths:

At the time of development of complexity, there is also a wave for

simplicity

• Low-Priced product has the effect to touch human mind , which can

transform the application of complex system into simple system.

ComplexTop Laptop

B5 Size NB

UMPC

Ordinary Laptop

(First Laptop)

OLPC EeePCSimple

The Conclusion

• Untouched Market : When the Market of PC in Advanced Country is saturated , the Low-Priced computers can explore the untouched market.

• Making the cake bigger from the bottom layer of consumption pyramid : Low-Priced can be a cutting

point to educate and touch customers.

• Creating Cake not only at present but also for the future : Low-priced consumption today, high-priced

consumption tomorrow.

The Conclusion

• Sub-Computer Market: The price advantage and useful

function for Low-Priced computer to be Sub-Computer.

• Simple Application: Mobile computer application needs

to lower complex and time-consuming application items.

• Easy Characteristics: Easy to use and easy to bring

everywhere , the reassurance of Low-Priced computers.

~The End~

Thanks For Your Reading