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Terracog Global Positioning Systems: Conflict and Communication on Project Aerial

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Assignment 1

TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial

A report submitted to

Prof. Rohini Patel

In partial fulfilment of the requirements of the course

Written Analysis and Communication- I


Chettipalli Mani Venkatesh

Section A

Roll No. 1911068



[pic 1]


To: Emma Richardson

From: Mani Venkatesh

Date : April 11, 2008

Subject: Review on pricing and launch date of Project Aerial


This report contains various details regarding the recent conflict between the inter department teams concerned with Project Aerial and its price point and launch date. Please find the details regarding it in the section below.


Thanks and Regards,

Mani Venkatesh

One Page Summary:

TerraCog, an eminent tech-firm which develops GPS (Global Positioning System) and similar products for outdoor enthusiasts, has recently been outpaced by a competitor’s new product that makes unique and innovative use of satellite imagery. Initially TerraCog failed to recognise the importance of visual appeal in its products but after noticing the sales performance of BirdsI and getting feedback from its retailers, it desired to develop a product of its own on the similar lines, dubbed Project Aerial. The time constraints and projected costs pressurised the design and production department teams so Emma Richardson, Executive VP, scheduled a pair of meetings between key managers and executives to discuss about what needs to be done and what direction has to be taken.

So the main issue here is that there is lack of coordination and communication between various departments which in turn leads to lack of clarity on pricing and positioning of Aerial. This provides Emma with two options i.e. either to go with production of Aerial or to abandon it.

The decision taken by Emma has to depend on the reputation of TerraCog, future scope for innovation in such technological gadgets, customer satisfaction and a plan which would ensure them to pull the customer base from their competitors’ products towards themselves.

For this to happen they should focus entirely on launching Aerial on time by pricing it according to Ed Prior, which is at $425. Their first and top most priority must be to gain customer confidence and then strengthen their current customer base without focusing much on profits. That would give them a sufficient window to redesign Aerial, improve the manufacturing process and cut production costs wherever necessary. Meanwhile Emma Richardson can also workout on ways to reconfigure the coordination between the design and production teams for a smooth and efficient functioning of the company as a whole.

Situation Analysis:

TerraCog, a private company, has built a reputation over the years for its well-crafted Global Positioning System (GPS) and fishing sonar equipment. Its GPS products are specifically targeted at hunters, hikers, campers, cyclists and other such outdoor enthusiasts.

Earlier the company was not skeptical about being first to the market and lagging in terms of technological innovation because it primarily focused on improvising the quality of its products and effectively addressing its customer needs. But that changed after the third quarter of 2006 when Posthaste, a new competitor, had unveiled a GPS prototype called “BirdsI” that displayed satellite imagery which was an improvement on the conventional graphics offered by the rest of the industry. Though it had a visual appeal, TerraCog was not impressed with its performance in terms of accuracy and reception quality and therefore dismissed its concept. But on the other hand, a number of key buyers and product reviewers found it to be a captivating innovation.



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