MobileRead Forums - View Single Post - The PearPad: A Cautionary Tale for Founders

maynard · 05-06-2010, 07:24 AM

I very much agree with this author's assessment. The Edge fits perfectly as an example of a "PearPad" product: manufactured by a startup and lacks a clear "use case" in its marketing. I think Entourage management would be well advised to read this article and consider who they plan to target as buyers of this device. I understand the company wants the education market, but that is Apple's traditional home turf. If Entourage expects to displace (or even just eat a bit) of the Apple, their product will have to meet a use case that the iPad can't hope to achieve.

One such use case is language training, particularly Asian languages with ideographic characters. Pen input in Notes combined with textbook access on the LCD panel actually replaces a textbook and notebook for learning character writing. With A/V support, one can combine pronunciation practice with the device.

Based on this I would recommend Entourage attempt to partner with a firm like RosettaStone to port their software over to the Edge and thus aggressively target that sub-market. Because Entourage cannot beat Apple at the general use game. Apple has many orders of magnitude more money to promote their product, and far more sales connections and leads throughout the general education industry.

JMO...

http://epaley.posterous.com/the-ipad...e-for-founders

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Let’s rewrite this story with a hypothetical startup. Imagine that a product equivalent to the iPad was created by a startup called Pear and no one has ever seen such a device before. Pear has no proven distribution and a very limited marketing budget. Let’s assume that Pear had the extraordinary hardware design, software UX and supply chain expertise to create something as beautiful, low cost and multipurpose as the iPad and was the first in the world to market such a product. Let’s call it the PearPad. Let’s even assume that Pear is reasonably well financed for their launch with $15MM in fresh venture capital. Would anyone buy the PearPad? Besides a small group of fringe early adopters, I think the answer is no. I think PearPad would be lucky to sell 1000 devices in its first month; far from Apple’s 1MM. It would be a stretch to imagine how PearPad would ever recover its enormous R&D investment to create such a high quality product. Put another way, an innovative device marketed at everyone is likely to fail because it doesn’t solve a clear problem for anyone.

What would PearPad have to do to be a success? Pear would need to design the system around a clear use case and market to customers that had the strongest need for that use case. Over time that use case can broaden to target more customer segments. However, at the beginning, a lack of focus makes it unclear what one does with the device, who should buy it, and how to market to the right customers.

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05-06-2010, 07:24 AM	#1
maynard Edge User	The PearPad: A Cautionary Tale for Founders I very much agree with this author's assessment. The Edge fits perfectly as an example of a "PearPad" product: manufactured by a startup and lacks a clear "use case" in its marketing. I think Entourage management would be well advised to read this article and consider who they plan to target as buyers of this device. I understand the company wants the education market, but that is Apple's traditional home turf. If Entourage expects to displace (or even just eat a bit) of the Apple, their product will have to meet a use case that the iPad can't hope to achieve. One such use case is language training, particularly Asian languages with ideographic characters. Pen input in Notes combined with textbook access on the LCD panel actually replaces a textbook and notebook for learning character writing. With A/V support, one can combine pronunciation practice with the device. Based on this I would recommend Entourage attempt to partner with a firm like RosettaStone to port their software over to the Edge and thus aggressively target that sub-market. Because Entourage cannot beat Apple at the general use game. Apple has many orders of magnitude more money to promote their product, and far more sales connections and leads throughout the general education industry. JMO... http://epaley.posterous.com/the-ipad...e-for-founders <blockquote> [...] Let’s rewrite this story with a hypothetical startup. Imagine that a product equivalent to the iPad was created by a startup called Pear and no one has ever seen such a device before. Pear has no proven distribution and a very limited marketing budget. Let’s assume that Pear had the extraordinary hardware design, software UX and supply chain expertise to create something as beautiful, low cost and multipurpose as the iPad and was the first in the world to market such a product. Let’s call it the PearPad. Let’s even assume that Pear is reasonably well financed for their launch with $15MM in fresh venture capital. Would anyone buy the PearPad? Besides a small group of fringe early adopters, I think the answer is no. I think PearPad would be lucky to sell 1000 devices in its first month; far from Apple’s 1MM. It would be a stretch to imagine how PearPad would ever recover its enormous R&D investment to create such a high quality product. Put another way, an innovative device marketed at everyone is likely to fail because it doesn’t solve a clear problem for anyone. What would PearPad have to do to be a success? Pear would need to design the system around a clear use case and market to customers that had the strongest need for that use case. Over time that use case can broaden to target more customer segments. However, at the beginning, a lack of focus makes it unclear what one does with the device, who should buy it, and how to market to the right customers. [...] </blockquote> Last edited by maynard; 05-06-2010 at 07:52 AM.