The First $20 Million Dollar Is Always Hardest

Business Idea:

Main business idea for this movie is to develop personal computer which will cost $99. Originally, it was meant to help third world countries to unleash the power of computer and internet with the availability of cheap computer.

The existing computers were costing much more than the $99 target. It order to cut down the cost, the team came up with the idea of developing a computer which will be connected to internet and will have all the resources through internet. This has cut down the cost to around $300 but still it was more than their target value. The team already had some innovation which was developed for recreation purpose by one of the team member. The group took that idea and turned that to a computer screen and was able to bring down the cost under $99 dollar.

Using Porter's five forces, we can analyze the movie in the following ways:

Entry of Competitors: The team was working under a research facility which I funded by big corporations. The donor for the research facility always wanted to have invention made which will help them financially. Having a computer under $99 causes direct threat to one of the main donor corporation where the corporation makes billions of dollars by selling hardware's which are not cheap. It is always very difficult to enter to a market where there are established competitors and they have strong hold.

Threat of Substitutes: Consumers always look for cheaper alternative but often times it is the market that determines at what price the product will be sold to customer. The team came up with the idea of a cheap computer but because of the competition from established player often times it is very difficult to get in the market. Often times, the Venture Capitalist see the value and potential of a product which can be delivered to consumer at a considerable cheaper price but