Aerial Facilitation
Facilitating the Aerial Project Deadlock
TerraCog Global Positioning Systems is behind in their Market Entry for a Satellite Imagery Device, yet can't agree on how to proceed
Situation Analysis
TerraCog is a privately owned firm that specializes in various Global Positioning Systems (GPS) and sonar devices. At the time the case was published, the industry in which TerraCog operates was booming. Portable GPS devices had reached a price point in which they appealed to a broad consumer base and applications of these devices have become more common in the automotive market as well as outdoor and sports related applications. Although TerraCog isn't the market leader in this industry, they have successfully carved out a niche with a loyal customer base. These products are defined by a high level of quality as well as containing a unique set of features that appeal to many users in different applications.
Even though the company has had a successful strategy in their current strategy, the industry moves quickly as the level of technological sophistication in the portable devices rises quickly. The example of this trend that is illustrated in the case involves TerraCog's competitor Posthaste. This competitor has developed a platform for their devices that allows users to view satellite imagery of the terrain directly on their device. Previous generations of these devices, like the one TerraCog currently produces, only provide a limited graphical representation of the geographic area of interest. However, Posthaste has developed a device known as the BirdsI which has the capability of showing an actual satellite image of the desired GPS coordinates. These capabilities are also being introduced by others, such as the market giant Garmin.
Figure 1 - Comparison Screen Shots
The internal situation inside TerraCog can be characterized by a high level of disagreement regarding how to bring their version of the product with satellite capabilities, the Aerial, to the market. The design team has reduced costs as much as they believe they can without sacrificing quality and are admit that costs...
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