TerraCog GPS

Puneet
Arora Pulkit
Mehta
Raashi sodhi
SITUATION ANALYSIS
Situation Analysis
 Terracog was a successful privately held firm
specializing in high quality GPS 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
and bewilderment, 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
 S
h
o
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 visio

n

 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

Pros reduce production cost.
Cons
•Immediate market presence (BirdsI • Decreased margin
and Garmin already there)
• 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 season
 Decision Analysis: Decision
3
 Cancel product launch completely
 Focus and capitalize on growth in cycling and
fitness GPS applications.

Pros Cons
• More stimulating technically • No share in Satellite
to team members Imagery GPS market
• Early mover advantage • High risk
•Underserved market: Great •Hamper the brand image of
Terra Cog
scope
 Decision Analysis: Decision
4
 Emma Richardson works one on one with
Team Leaders to address underlying
agendas.
 Arrive on a consensus on price and then

launch the product

Pros Cons
• Better Coordination • May be too late to change
the development process
• Basis for consensus •There may be no solution to
some problems
•Aligns objectives and •Could be highly priced from
decisions customer’s perspective
 Plan of
Action
 We recommend
DECISION 2
 Cancel product launch
for now.
 Company‟s 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,
 Very low margins
 May fail to reduce the cost of the product
 Ultimately drive it into losses.
 If decision 3 is chosen,
 The project is abandoned
 TerraCog will completely lose the Satellite Imagery GPS
Market
 Hamper company‟s image.
 If decision 4 is taken
 the company‟s 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 company‟s
image but may also help it recapture its market
share.