1. Charmed Technology Wearable PC Amit Metser Andrea Aimi Ari Fudim Mohit Wadhwani Sandy He

2. Agenda Problem Definition Situational Analysis Alternatives Recommendation Implementation Q &A

3. What is the CharmIT? Who is Charmed Technology? Spinoff of MIT Media Labs in 2000 Final development stages of the CharmIT - the1st wearable computer designed for the consumer market. Optimized with peripheral input and display unit No formal Marketing plan to date! Need to determine next steps

4. 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

5. 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

6. Problem Definition 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.

7. Alternatives 1. Hire a Sales and Marketing team immediately 2. Focus on Development

8. 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.

9. 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

10. Decision Criteria

11. 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

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