Terracog Global Positioning System Case Study

Case TerraCog Global Positioning System

     Conflict and Communication on Projects Aerial

Name: Pardeep Garg                                                           Roll No: EPGPX02-075

Situation Analysis:

• TerraCog was founded in 1977, specialized in manufacturing high quality global positioning system & fishing Sonar equipment.
• Have very good market presence & brand value
• Even though terra cog was always not first to market new products, the did not have any problem in capturing the market as the products were of high quality and effectively addressed customer needs
• When a competitor, posthaste introduced a GPS prototype called ‘BirdsI’ that display satellite imagery, TerraCog did not see any threat which proved to be wrong.
• But the time TerraCog realized their mistake in judging BirdsI, the product was a huge success
• In order not to lose the market TerraCog also plan to launch a GPS with satellite imagery dubbed Project Aerial
• As the product was to be launched without any delay a redesign with in existing GPS platform was proposed. however, the projected cost is high than the expected target cost of sales team
• Sales team headed by Ed Pryor had given target cost of aerial should be priced below $425 to capture lost market share to competitor
• As per estimate of pricing team price of sale of aerial at the minimum be $475
• The price is quite too high for the sale team to consider
• The key stakeholder gathers in a pair of contentious meetings that feature anger, finger pointing, blaming each other, but produce no effective conclusion.
• The responsibility of pushing the group toward a decision lies with Emma Richardson, a newly promoted executive Vice president of company

Problem Statement:

Now Main challenge with Emma is whether she should go ahead with Aerial project or Not

Objective:

To take decision on launching of the Aerial

To Increase Market Share & recapture lost Market

Problem Analysis:

• No clear agenda
• Lack of communication among executives
• Inter group conflicts
• Short sightedness
• Lack of proper research
• Lack of innovation (redesigned within the existing GPS platform)
• Lack of Motivation
• Lack of enthusiasm
• Lack of common Vision
• Preferences of Individual goal over organizational goal
• Lack of Leadership

Key Problem Are:

• Short Sightedness & lack of common goal
• Hurry to enter the market after a significant lag
• Lack of clarity on price and positioning
• Inter group conflict

Decision Options:

1. Launch Aerial as planned with reduced margin at price $425
2. Cancel Product launch Now recreate new product with major reconfiguration and moldings
3. Cancel product launch completely and focus on other area of equipment
4. Arrive on consensus on price and then launch the product

Evaluation of Option 1:

• Launch Aerial as planned with reduced margin at price $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