Wal-Mart is now offering a laptop that is less than $500, a first of its kind. While it may mean that profit margins for PC companies will go down but in this article I want to discuss the new business opportunities that are going to emerge because of this.
As we have seen over the years, a personal computer is no longer an IT piece of equipment. It has transformed itself into a consumer electronics device, particularly now that even business people use instant messenger programs to chat with business associates (and often friends and family members), watch DVDs, and even management consultants like me, when we are really bored, play a game. No wonder then that the Comdex is over and is replaced by the Consumer Electronics Show, where PCs and other peripherals will now be displayed.
It is also important to note that America is now a laggard when it comes to what is happening in the world of Internet. Only in October of this year, we finally have more broadband users than dial-up. In fact the the United States trailed 12 of the 15 top economies, including Canada, in broadband penetration, according to a September report from U.N. International Telecommunication Union analyzing 2003 data. Surprisingly enough, South Korea is on top as a country where wireless broadband is a way of life (despite being a non-English speaking nation, visitors from South Korea rank among the top five countries in reading the management consultant blog).
I see the following demographic changes with the launch of the $498 laptop and all of these present new business opportunities:
- Demand for broadband internet access almost everywhere. It will not be just geeks and management consultants sipping Starbucks lattes and checking their emails or surfing the net. There will be small business owners, construction workers (checking the arrival of next shipment of timber to the site), and even housewives who might do some surfing while the kids practice in the gym. In other words, think of providing free wireless broadband signal and enough outlets to charge the batteries in your business (hotel, restaurant, bookstores, shop, library, etc.).
- Broadband helped spark a social and political renaissance in South Korea. This might happen in the United States as well. Be ready for an explosion in the number of blogs and diminishing importance of traditional media channels, like television. More ebusiness, dating, etc.
- The more computers there will be, greater will be the demand for accessories, peripherals, and software. Plus, services will also be needed to enable so many new people to have laptops that will become another accessory that will lug even to the mall.
- Instant, always-available communication. As wireless access points proliferate, Americans will increasingly expect instant communication. No excuses about being away from a PC. So businesses will have to respond faster to requests from their customers as they get used to the new communication etiquette.
- Even faster penetration of a digital economy. It is great to see Kodak abandon its film business but I expect that our transition to a digital economy will be expedited.
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