Charmed Technology

Wearable PC

Amit MetserAndrea Aimi

Ari FudimMohit Wadhwani

Sandy He

Agenda

Problem DefinitionSituational AnalysisAlternativesRecommendationImplementationQ &A

What is the CharmIT?

Who is Charmed Technology?Spinoff of MIT Media Labs in 2000Final development stages of the CharmIT -

the1st wearable computer designed for the consumer market.

Optimized with peripheral input and display unitNo formal Marketing plan to date!

Need to determine next steps

Internal Issues

Strengths

Technological capability Unique brand promotion Sleek Design Cheaper than industrial

wearable PC Potential of Nanix OS

Weakness

Focus is too broad Promotional activity is

inconsistent/ineffective Undifferentiated Offering Group Oriented Dependence on

peripherals

External Issues

Opportunities

Wireless infrastructure improving

Wearable computer market expanding

Height of technology bubble – consumers are accepting of new technology

Threats

Lack of Widespread wireless technology

Availability of Substitute products

Social Acceptance? Privacy issues? High technology growth

pattern

ProblemDefinition

Given that Charmed’s goal is to penetrate the mainstream consumer market:

Is this the most appropriate time to hire a sales and marketing team?

How should the CEO of Charmed best allocate resources to maximize growth and remain within budgetary constraints.

Alternatives

1. Hire a Sales and Marketing team immediately

2. Focus on Development

Alternative 1- Hire a Marketing Team

Only get one chance to release product. If Charmed delays deployment, gives

potential competitor opportunity to penetrate market

Developing for who? Need to maintain “innovator” status Increased sales will allow for increased R&D

budget.

Alternative 2 – Don’t Hire

Focus on better developing product to create a more differentiated offering.

Wait for AR and other specialized software to create “wow” factor

Establish partnership agreements with firms as potential users

Sell product online (multiples of 5) Prices can remain high

Decision Criteria

Recommendation:Do Not Hire Marketing & Sales Team at This Point in Time

Focus on additional development to create a differentiated CharmIT offering Partnerships with defined markets exhibiting

immediate usage potential (wall street, university, gamers etc.)

Continue on-line selling (in 5’s)

Develop method for obtaining feedback Will allow for creation of New market

through emphasis on function-specific software

Implementation

Create promotional pricing strategy Outsource peripheral development Allocate development resources as follows:

TechnologyPeripheral, 5%

OSNanix, 22%

ApplicationsSoftware, 40%

DesignCreative , 12%

TechnologyCore Charm IT ,

21%