Yes, I agree.

Nicholas Negroponte's decision to partner with Microsoft for the One

Laptop per Child initiative can be evaluated through Porter's Five Forces framework
Bargaining Power of Suppliers
In the case of OLPC partnering with Microsoft, the project aimed to provide low-cost
laptops to children in developing countries. The availability of alternative suppliers
and competition in the market may have given suppliers some leverage in
negotiations with OLPC. Negroponte has emphasized the importance of producing the laptops
on a large scale in order to keep costs low. Originally requesting orders of no less than 1

million units from interested countries, Negroponte later lowered the minimum
order to 250,000 units, and according to OLPC representatives, smaller orders may
be accepted (đánh dấu trích nguồn).
(https://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=830E697B2E624C0038B
490183740DDA0?doi=10.1.1.563.2134&rep=rep1&type=pdf) )
(https://www.slideshare.net/zrasheed/one-laptop-per-chid-global-marketing-
analysis ). This requirement aimed to benefit from economies of scale and keep costs
low. However, the lack of an established supply chain and the high costs of testing
the product could have potentially inflated costs and limited OLPC's bargaining
power with suppliers. By partnering with a technology giant like Microsoft,
Negroponte could have gained access to a wide network of suppliers and leverage
Microsoft's purchasing power to negotiate better prices and secure reliable sources.
This partnership may have helped mitigate the potential risks associated with supply
chain disruptions and ensure the availability of necessary components and materials
for the laptops .
Bargaining Power of Buyers
The OLPC initiative targeted governments, nonprofit organizations, and educational
institutions as potential buyers. The project aimed to provide laptops at a price of
$100, however, it face challenges in meeting its self-imposed minium requirement
of 5 million orders needed to keep costs low(trích tác giả slidshare). So Microsoft's
involvement in the partnership could have potentially increased OLPC's bargaining
power. These entities had considerable bargaining power due to their ability to
negotiate favorable terms and pricing. By partnering with Microsoft, the OLPC
initiative could have enhanced its appeal to buyers. Microsoft's brand reputation,
global reach, and established relationships with government entities could have led
to more favorable negotiations, increased demand, and wider adoption of the low-
cost laptops. Microsoft, through its Unlimited Potential vision, was committed to
making technology more affordable, relevant and accessible for the 5 billion people
around the world who do not yet enjoy its benefits and hopes to reach its first major
milestone — to reach the next 1 billion people who are not yet realizing the benefits
of technology — by 2015( đánh trích nguồn)
(https://news.microsoft.com/2008/05/15/microsoft-and-one-laptop-per-child-
partner-to-deliver-affordable-computing-to-students-worldwide/)
Competitive Rivalry
Despite pioneering the product category, OLPC is already facing competition from
Intel’s Classmate PC, and others products being developed by companies such as
Encore, Microsoft and AMD, all tagerting vying for market share. Technology is
glassly competitive with highly quick of inovation. By partnering with Microsoft, the
OLPC initiative could have gained a competitive edge. Microsoft could have
enhanced the functionality and user experience of the laptops, making them more
attractive compared to competitors' offerings. Additionally, Microsoft's financial
backing and global presence had provided a significant advantage in terms of
marketing, distribution, and market penetration.
Threat of New Entrants
The threat of new entrants in the low-cost laptop market was relatively high.
Microsoft's partnership could provide OLPC with access to advanced software
technologies, expertise, and resources. This could enhance the functionality and
performance of OLPC's laptops, making it more difficult for new entrants to match
the technological capabilities offered by the OLPC-Microsoft collaboration.
Furthermore, microsoft also provide a competitive advantage to OLPC by the
established distribution network. The partnership could potentially enable OLPC to
leverage Microsoft's distribution channels, making it easier to reach customers and
penetrate new markets. And Microsoft's established brand presence and strong
market position could have acted as a barrier to entry for potential new players.

Threat of Substitutes
In the case of the One Laptop Per Child (OLPC) initiative partnering with Microsoft,
the threat of substitutes in the low-cost laptop market could have been mitigated to
some extent. The partnership with Microsoft provided OLPC with access to Microsoft's
proven technology platform https://news.microsoft.com/2008/05/15/microsoft-and-one-

laptop-per-child-partner-to-deliver-affordable-computing-to-students-worldwide/ .By
leveraging Microsoft's expertise and resources, the OLPC laptops could have offered
distinct features and capabilities that differentiated them from substitutes such as
smartphones and tablets(https://www.theverge.com/2018/4/16/17233946/olpcs-
100-laptop-education-where-is-it-now . Microsoft could have provided the OLPC
laptops with specialized educational software, compatibility with existing software
applications, and integration with Microsoft's ecosystem. These features could have
enhanced the value proposition of the OLPC laptops and reduced the attractiveness
of substitutes. Also, the partnerships helped to improve other factors such as the
cost-effectiveness of the laptops, teacher training, ongoing support, and the overall
execution of the program. This factors make increase the perceived value of the
OLPC laptops and have ability to compete with subtitutes. .
Conclusion
The Microsoft partnership addressed the bargaining power of suppliers and buyers,
enhanced competitive advantage, mitigated the threat of new entrants, and reduced
the threat of substitutes. By considering these factors, we can understand the
rationale behind the decision and its potential benefits. However, it is important to
note that the effectiveness of the partnership ultimately depends on the execution
and alignment of goals between the two entities.