$100 laptop by John Quelch Essay Example | Topics and Well Written Essays - 2250 words

$100 laptop by John Quelch - Essay Example He needed investment in one million at a time by a nation in Laptop and including all expenditures, the price tag could go to $ 200 million to $ 250 million. Negroponte decided not to venture into production until he has firm commitments from governments to buy at least five million machines outside the USA. Competitors were increasingly lowering their product prices with no such restriction. The real issue was the shift in technology. The emerging markets were likely to be wireless-centric rather than PC- centric. Hence it was more viable to distribute internet enabled cell phones to children for education rather than trying to built and distribute Wi-FI enabled mesh networks with donated or subsidized Laptops as was being done by OLPC. The problem was of disruptive innovation and market evolution. OLPC is facing many different challenges and varied situations both internally and in the external environment. In the table below is the list of the few most relevant and important facts concerning OLPC. SWOT analysis is the most effective tool that provides the framework for the analysis of the business environment. It is considered more effective because, in a way, it combines the Porters five forces with the PEST analysis. It requires careful prioritization of strong opportunities and threats. Wrong selection may lead to weaker opportunities and threats coming in the analysis. SWOT analysis provides both internal and external analysis and provides a critical analysis of strengths, weaknesses, opportunities and threats. It helps organizations in developing its strategies like SO that emphasizes on utilizing strengths to capture the opportunities. WT strategy focuses on minimizing weaknesses and threats. ST strategy focuses on using strengths in minimizing threat whereas WS strategy is focused on minimizing weaknesses while focusing on strengths. In the same way, opportunities can be utilized to minimize weakness WO and threats OT depending on the strategy of the company. (Gerry Joh nson, 2008).