Quote:
Originally Posted by Jmirko
As a first step, Onyx should modify the M92 (software, stylus) and position it as an affordable digital notepad for students and office workers - anyone who uses paper notebooks daily. It's a potentially huge market, but it can only be tapped if Onyx can break out of the vicious cycle of "low volume - high price - low volume". I think it must cost less than 200 (USD/EUR/GBP). If this product is successful, it will provide Onyx with the brand recognition, user base, and - hopefully - cash to pursue the strategy further.
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I think a big question here is how do they get there in the first place? Saying the product needs to cost less than 200USD is fine, but unless they're producing them in high volumes this may be difficult (possibly even if they're in volumes), and even if we assume there is guaranteed market demand, they still need the money to makes those large orders. Of course this highlights another problem, if there is that guaranteed market demand, then getting the money should be easy, a venture capitalist firm or heck even a bank would jump at the chance to give them the money, but in reality there's no way you can guarantee market demand, in this particular case even Onyx must know it's likely such a risky more. (In fact if somehow there is 'guaranteed' market demand, the funders may consider the risk that someone else would notice and fill that demand first or better.)
In other words, it's a chicken and egg scenario. Onyx may be able to do good things if they had lots of cash, but without lots of cash, most scenarios you can come up with for how they can make lots of cash fail because they need lots of cash or at least credit to make that cash. This is of course a common problem in business. (I'm not saying it's impossible, clearly many companies do it all the time, that's how they get successful.)