Assignment 2: TerraCog Global Positioning Systems: Conflict and Communication on

Project Aerial

A report submitted to
Prof. Danesh Gojer

In partial fulfilment of the requirements of the course

Written Analysis and Communication - I

By
Aanchal Saxena
Roll No. 2211004

On
31 – 08 – 2022
Table of Contents

Letter of Transmittal..........................................................................................................3
Executive Summary...........................................................................................................4
Situational Analysis...........................................................................................................4
Problem Statement.............................................................................................................5
Options Available..............................................................................................................5
Criteria of Evaluation (in order of importance)..................................................................5
Evaluation of options.........................................................................................................6
Recommendation...............................................................................................................6
Action Plan........................................................................................................................7
Letter of Transmittal

To,
Ms. Emma Richardson,
Executive Vice President,
TerraCog Global Positioning Systems

From: Ms. Aanchal Saxena,

Executive Assistant

Date: 1st September 2012

Subject: Project Aerial – Recommended Course of Action

Hello Emma,

Good day!

I am sharing the report and analysis for the recommended course of action for Project Aerial
along with this email. The report contains plausible options for the next steps, an evaluation
of alternatives, recommendations, and an action plan.

Please feel free to connect with me in case of any queries or clarifications.

Executive Summary
TerraCog Global Positioning Systems specialises in GPS, targeting customers who like being
outdoors. In the 1990s, TerraCog began selling high-end GPS which were eventually liked by
the customers. The company hadn’t invested monetarily into novel innovation like its
competitors had. TerraCog specifically was conscious about what its customers preferred
because its products were more durable than those of its competitors.
The situation worsened in 2006. TerraCog’s competitor Posthaste introduced BirdsI.
According to rumours, the new GP system was the first hand-held device to use satellite
images, which garnered a lot of interest. Unfortunately, TerraCog's founders made an
inaccurate assumption about the amount of demand for the product. Sales were reported to
rise within two months of the product's debut.
BirdsI and other satellite-based GP systems were still in high demand in 2007. VP of Sales,
Ed Pryor urged TerraCog to rethink changing the product portfolio. He claimed that by
continuing to use vector images, the company had fallen short the retailers’ expectations. To
counter BirdsI, TerraCog created Project Aerial. The development team decided to revamp
the goods based on the already-existing GP system platform in order to save time.
EVP Emma Richardson was chosen to oversee production and market introduction for Aerial.
After numerous teams worked for months to plan, the management was unable to agree on
how to price the new product to both fulfil the expectations of the CFO and the sales staff.
Richardson had to help the committee decide whether Aerial should have been released by
the 2008 holiday season and choose the best price.

Situational Analysis
TerraCog has been successful in gaining the trust and confidence of its consumers over the
last few years. However, as a result of fierce competition from BirdsI, TerraCog is facing the
threat of being pushed out of the market. This has been due to some critical mistakes on the
part of the management. Firstly, the management undermined the popularity of BirdsI among
its own consumers. Secondly, the management was apprehensive of BirdsI’s durability and
reliability and assumed that it would not last as long as TerraCog’s products.
Aerial, with its new and revamped design, uses satellites to meet the consumer’s growing
demand for satellite pictures. The problem with the addition of the new features is the
increase in the production cost. Considering all factors, it is safe to assume that Aerial cannot
be priced less than $475, else the profit margins would be hit severely. At the same time,
entering a competitive market at this price may lead to other concerns.
Another concern is technology. The revamped Aerial is being launched two years after the
rival product, BirdsI. This means that the technology that Aerial uses cannot be considered as
novel. Moreover, it is $100 more expensive than the competitor, which cannot be justified as
the satellite used by Aerial slows it down.
It is also crucial to note that since its inception, there were some other concerns regarding
Project Aerial. The goals of internal teams were not aligned and in tandem. The development
team felt that more time was required to ensure the success of the product before deciding to
implement the new Aerial. Since there were no group appraisals, the departments were
concerned with their own successes and growth, rather than being determined in meeting the
company’s goals.
In this context, TerraCog Global Positioning Systems needs to decide on whether to launch
Aerial by 2008. If the decision is to launch, the pricing has to be decided, considering the
profit margins and competitor prices.

Problem Statement
TerraCog’s market share is depleting and the company’s revamped product is rather outdated.
The selling price of $475 is not competitive. Moreover, the environment at the organisation is
not favourable and there seems to be a disconnect among cross-functional teams. Hence,
TerraCog must decide whether to launch a global positioning system or to delay the launch
further.

Options Available
1. Introduce Aerial at $475
2. Launch now Aerial at $425
3. Postpone the release
4. Scrap off the project

Criteria of Evaluation (in order of importance)

1. Gaining back the market share
2. Meeting Consumer’s needs
3. Profitability
Evaluation of options
Options Gaining back the Meeting Profitability
market share Consumer’s needs

Introduce Aerial at Capturing back the Consumers’ needs High profit margin
$475 market share may not may be met but may expected, in case the
be sure shot as the lead to product takes off
price is high dissatisfaction in (comparatively low
terms of price chances)
Launch now Aerial TerraCog may start Consumers’ needs The profit margin
at $425 gaining consumers’ may be met but may may remain thin due
attention with its lead to pricing to price reduction
added feature of real- dissatisfaction
time satellite
imagery GPS v/s
static satellite
imagery GPS
Postpone the release Market share is Consumer needs may Higher profitability
expected to increase be met and even with the right kind of
as a new and exceeded production, use of
improved product technology,
will provide tougher marketing and
competition pricing
Scrap off the project Market share will TerraCog will no Decrease in
continue to decline, longer be able to profitability further
may lead to cater to the changing
TerraCog exiting the needs of the
market completely consumer
Table 1

Recommendation
It is recommended that the launch of Aerial be postponed and an improved product is
launched in the future, which has the latest technology and is competitive in terms of pricing.
Action Plan
1. Conduct in-depth market research and consumer behaviour study to understand consumers’
expectations from the enhanced product
2. Analyse the results to ideate the revamped product
3. Invest extensively in technological research and development to come up with novel
designs at decreased costs
4. Ideate, develop and implement a new marketing and promotion plan to cover up for
the lost market share and strengthen market position and boost sales of TerraCog’s
existing products
5. Develop and maintain network with new and possible retailers of Aerial

Word Count - 992