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Blue Ocean Strategy & One Laptop Per Child (OLPC)
Blue Ocean Strategy & One Laptop Per Child (OLPC)


In today's fast-paced IT industry where computer companies have long rivaled for leadership by coming up with the latest in technology developments, One Laptop Per Child (OLPC) decided take another route. Instead of competing for technology-savvy consumers who have capabilities to pay for the most expensive gadgets, OLPC targets nearly 2 billion children in developing countries who simply do not have access to computers because of poverty. Through the creation of the XO laptop, OLPC has successfully pursued a blue ocean strategy.

THE 4 ACTIONS FRAMEWORK
  1. Created
    Through the XO, the organization has not only developed a laptop computer solely for educational purposes but has created an opportunity for children in developing countries to “explore, experiment, and express themselves” using previously inaccessible technology. Furthermore, the XO is externally and internally designed specifically for children. It features an easy-to-use interface and a rugged construction with a dirt and water-resistant keyboard. Lastly, the OLPC laptop is the first to integrate a hand or foot-operated power generator made feasible by its energy requirement of only 2 watts.

  2. Raised
    The WiFi-enabled XO promises to raise the quality of education in developing countries by making information easily accessible and allowing children to tap into the educational and communications benefits of the internet. Furthermore, it raises the level of social responsibility in the IT industry. Where charity in education used to mean sponsoring school books and notebooks, OLPC provides means for the more fortunate to sponsor the cost of providing each child with a laptop through its online donation form or its “Give 1 Get 1” program.

  3. Eliminated
    By directly dealing with country ministers or high-ranking officials, OLPC has eliminated the need for sales teams. They deal at the national level where officials represent their country and order in bulk. For example, in October 2006, the government of Libya signed up for 1.2 million laptops to supply each school-age child in the country. Uruguay has also made the first official order of 100,000 XO laptops in October 2007, with a possible 300,000 additional units by 2009. Furthermore, because of the amount of attention being given to OLPC in the press and other media, the organization has eliminated the need for aggressive marketing and advertising. This is also due to the fact that OLPC does not target individual consumers.

  4. Reduced
    The XO does away with some laptop features leaving behind only those which allow for basic use, e-book reading, and educational gaming. OLPC has also reduced the number of middlemen by dealing not with resellers but with ministers who will buy the laptops and distribute them to the end users. The XO has also reduced the reliance on standard DC power outlets. While the XO can be charged using outlets or alternative sources such as car batteries, it can also be recharged by a hand or foot-operated power generator. This feature was made feasible by XO’s 2-watt power requirement as opposed to the 30 to 40 watts typically required by laptops.

However, the most significant aspect that OLPC has reduced is price. The most popular laptops today sell anywhere from US$700 to over US$3,000. Although there are so-called “low-budget” laptops, those usually sell around US$500 to US$600. The XO currently sells for US$200 and is expected to drop in price early 2008 as component prices fall, bringing it closer to the organization's goal of a US$100 laptop.
By: boredumb
Published: 01/21/08


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    5 Posted Comments:

    Great Article

    @ 5:13 am 01/21/08 by Douglas
    Thank you for your contribution to Informative Post.

    Can you buy this XO laptop in stores now?
    Reply to this Comment

    Great article, but...

    @ 6:34 am 01/21/08 by Walter Bender
    You miss the forest for the trees: OLPC's mission is to give every child an opportunity for learning. We built the laptop for advancing that goal, not the other way around.
    Reply to this Comment

    @Walter Bender

    @ 4:56 am 01/22/08 by DLA
    I think you may have missed the point of the article. It seems to be merely an analysis of the OLPC XO project from the perspective of the Blue Ocean Strategy (BOS), hence the 4 actions framework evaluation of the XO laptop.

    I doubt the author confused the mission of your organization as the OLPC mission statement is clearly outlined in the websites. Despite the capitalist nature of the BOS, I believe the strategy's inherent principles are still applicable.

    Then again, I, myself, may have missed the point of your comment. English is, after all, not my first language.
    Reply to this Comment

    Blue Ocean

    @ 5:26 am 01/22/08 by DLA
    When i first heard of the Blue Ocean Strategy (a few friends were hyped about it as if it were the greatest thing since sliced bread), I initially dismissed it as just a snake oil rehash of value innovation. If someone had given me a copy of the book back then, I would've put it on the shelf next to my Robert Kiyosaki books (they were gifts).

    After a few discussions with my business and economics professors (whose achievements are beyond reproach), I was convinced that it was something I needed to read.

    I never got around to purchasing the book though and this article just reminded me that I should really buy my own copy.

    To the author: Perhaps you can write some more about BOS, or anything to do with business. I'd be interested to read some more of your thoughts.
    Reply to this Comment

    think

    @ 9:36 pm 10/10/08 by lakmal
    ..Doing things different is the key here . its The survival strategy . every thing is changing other than the change ...market ..business has no exception ..continue in changing to adopt or change the pace ...who do it first will decide whether you live to dead ..

    OLPC is a good thought...we met our friends in college .my son met them in the net.
    i played in the lane top ground ..they play in computer...
    i refer books. they refer net... i go to store ...thy got Amazon .

    i had school bag with lot of books ..he need a laptop ...
    so i agree.. to face the challenging envirment ...and to lead it ..he need proper tools ..at the moment its omputes..but tomorrow it may be a diffrent tool ..

    so the computer is jut a case study valid for only today ..my son will not look at it tommrow
    Reply to this Comment

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