At the summer 2006, a competitor of TerraCog, Posthaste produced a new GPS prototype BirdsI, which can display satellite photographs. In October 2006, Posthaste launched BirdsI as “the only handheld GPS with satellite imagery” at that time, and it was priced at a reasonable $400. Managers in TerraCog expected BirdsI would not be popular after a certain period of time. However, the demand of a GPS with satellite imagery kept increasing by spring 2007. TerraCog had started losing competitiveness and market share to Posthaste by the success of BirdsI. Moreover, TerraCog had not yet decided whether they should introduce a similar product, namely “Aerial”, to the market. If they ...view middle of the document...
Team members could not find a way to express ideas and they were forced to work on Project Aerial. They may not understand how the business condition was, and trust between executives and employees could not be built. As a result, the team members would be confused and fail to succeed.2
It seemed that Emma Richardson and Allen Roth had personal interest on launching Aerial. Richardson had been promoted to executive VP recently and she wanted to prove the launch of Aerial in her hand. Roth wanted to prove his readiness to be the next VP of Design & Department by launching Aerial. This level of interest makes them subjective and limits their ability to pay attention to opposing arguments.3
Alternatives and Consequences
Alternative One: Launch Aerial at the lowest price possible without relaxing profit margin
Consequences: As TerraCog has always outcompeted on technological innovations and precise navigations, launching Aerial late to market is not a problem. The planned Aerial launch day will be on holiday seasons. This will give experienced hikers and campers a large variety of GPS to choose from. Aerial has the same visual images as the products in the present market (i.e. BirdsI), but with better quality. With addressing customer needs, Aerial can attract loyal customers and TerraCog can maintain its market share. Moreover, other new projects will start again once the Project Aerial is done. The morale of the product development team will be increased . The risk is that new customers will not understand the difference between Aerial and other similar products like BirdsI, and they will choose the...