TerraCog GPS

Puneet Arora
Pulkit Mehta
Raashi sodhi

SITUATION ANALYSIS

Situation Analysis

Terracog was a successful privately held

firm specializing in high quality Global
Positioning system and similar products.

Even though TerraCog was always not the

first to market new products, the
company did not have any problem in
capturing the market as the products
were of high quality and effectively
addressed customer needs.

Situation Analysis (Contd.)

When a competitor, Posthaste,

introduced a GPS prototype called
BirdsI that displays satellite imagery,
TerraCog did not see any threat, which
proved to be wrong.

By the time TerraCog realized their

mistake in judging BirdsI, the product
was a huge success.

Situation Analysis (Contd.)

In order not to lose the market, TerraCog

also plans to launch a GPS with satellite
imagery dubbed Project Aerial.

As the product was to be launched

without any delay, a redesign within
existing GPS platform was proposed.
However, the projected costs threaten to
scuttle the project.

Situation Analysis (Contd.)

Sales team headed by Ed Pryor feels the

new product Aerial should be priced
below $425 to capture the lost market
share to the competitors.

As per the estimate of pricing team,

price for sale would, at the minimum, be
$475.

Situation Analysis (Contd.)

The price is quite too high for the sales team to

consider. The key unit managers gather in a
pair of contentious meetings that feature
anger, finger pointing, blame
andbewilderment, but produce no effective
conclusion.

The responsibility of pushing the group towards

a decision lies with Emma Richardson, a newly
promoted Executive Vice President of the
Company.

Situation Analysis (Contd.)

NOW THE MAIN QUESTION IS:

Should Emma Richardson go ahead with

the Project Aerial or not ???

PROBLEM ANALYSIS

PROBLEM DEFINITION

No clear Agenda

Lack of
communication
among executives

PROBLEM DEFINITION Cont..

Inter group conflicts

Delayed market
responsiveness

Short-sightedness

PROBLEM DEFINITION Cont..

Lack of proper research

Lack of innovation
(redesigned within the
existing GPS platform)

PROBLEM DEFINITION Cont..

Lack of motivation

Lack of enthusiasm

PROBLEM DEFINITION Cont..

Lack of cohesive/common
vision

Preference of individual goals

over organizational goals.

PROBLEM DEFINITION Cont..

Lacking true
leadership

KEY PROBLEMS ??

Key Problems

Short sightedness and lack of

common vision/Goals

Hurry to enter the market

after a significant lag.
Lack of Clarity on price

and positioning

Inter group conflict

DECISION ANALYSIS

Decision Analysis: Decision 1

Launch Aerial as planned with reduced
margin i.e. focus on low price (at $425)
Build a foundation in the market and gain
consumer confidence.
Continue Redesigning and improve the
manufacturing process of the product to
reduce production cost.

Pros

Cons

Immediate market presence

(BirdsI and Garmin already there)

Decreased margin

Capture sales for holiday season

Pressure on manufacturing and

design team to reduce product
costs.

Decision Analysis: Decision

2
Cancel product launch for now.
Recreate and redesign a new product
with major reconfiguration and
moldings i.e. focus on positioning.
Hit the market with the new product
with a BANG.

Pros

Cons

Maintain Paramount
Quality

Declining market share

Surpass Competitors

High risk
Missing holiday sales

Decision Analysis: Decision

3

Cancel product launch completely

Focus and capitalize on growth in cycling
and fitness GPS applications.

Pros

Cons

More stimulating
No share in Satellite
technically to team members Imagery GPS market
Early mover advantage

High risk

Underserved market: Great

scope

Hamper the brand image

of Terra Cog

Decision Analysis: Decision

4
Emma Richardson works one on one
with
Team Leaders to address underlying
agendas.
Arrive on a consensus on price and
Pros
Cons
Better
then
Coordination
launch the product
May be too late to change

the development process

Basis for consensus

There may be no solution to

some problems

Aligns objectives and

decisions

Could be highly priced from

customers perspective

Plan of Action

We recommend
DECISION 2
Cancel product
launch for now.
Companys USP is
the quality it offers.
It should not
compromise on that
even if it lags in
launching the
product.

Why Not Other

Alternatives ??

If decision 1 is chosen,

If decision 3 is chosen,

Very low margins

May fail to reduce the cost of the product
Ultimately drive it into losses.
The project is abandoned
TerraCog will completely lose the Satellite Imagery
GPS Market
Hamper companys image.

If decision 4 is taken

the companys customers may perceive the product

to be highly priced with compromise on speed, as
compared to competitors.

Plan of Action Cont..

Do a proper market research to identify gaps

between what is offered and what is desired.
Decide on a common goal
and vision.
Recreate and redesign a new
product with major reconfiguration and
moldings i.e. focus on positioning.
Executives should start encouraging and
motivating their teams. Make them realize the
importance of launch of this product

Plan of Action Cont..

Emma Richardson should start working one

on one with Team Leaders to address
underlying agendas.
She should start acting as a mediator and a
common link for communication between
various departments.
This would ultimately lead to launch of a
perfect product which would not only
enhance companys image but may also
help it recapture its market share.