TerraCog is facing issues launching its new GPS product with satellite imagery, Project Aerial. There are conflicts between departments over price and design. Emma Richardson must decide whether to launch as planned, cancel and redesign, or cancel altogether. The analysis recommends canceling the launch to redesign and hit the market with a superior product that maintains quality without compromising on price or speed. Emma should improve cross-department communication and motivation to align on a new vision before relaunching.

1. TerraCog GPS
Puneet Arora
Pulkit Mehta
Raashi sodhi

2. SITUATION ANALYSIS

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. Situation Analysis (Contd.)
NOW THE MAIN QUESTION IS:
 Should Emma Richardson go ahead with the
Project Aerial or not ???

9. PROBLEM ANALYSIS

10. PROBLEM DEFINITION
 No clear Agenda
 Lack of
communication
among executives

11. PROBLEM DEFINITION Cont..
 Inter group conflicts
 Delayed market
responsiveness
 Short-sightedness

12. PROBLEM DEFINITION Cont..
 Lack of proper research
 Lack of innovation
(redesigned within the
existing GPS platform)

13. PROBLEM DEFINITION Cont..
 Lack of motivation
 Lack of enthusiasm

14. PROBLEM DEFINITION Cont..
 Lack of cohesive/common vision
 Preference of individual goals over
organizational goals.

15. PROBLEM DEFINITION Cont..
 Lacking true leadership

16. KEY PROBLEMS ??

17. 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

18. DECISION ANALYSIS

19. 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 • Decreased margin
and Garmin already there)
• Capture sales for holiday season • Pressure on manufacturing and
design team to reduce product
costs.

20. 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

21. 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
scope Terra Cog

22. 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
Proslaunch the product 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

23. 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.

24. 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.

25. 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

26. 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.