Terra Cog Case
Executive summary:
An impasse has occurred in the pricing decision of Aerial, TerraCog’s satellite imagery enabled GPS, due to a distinct mismatch in the price estimated by the production department and the desired price, set by the sales department. TerraCog, being already behind its competitor “BirdsI” by about two years, needs competitive pricing and superior quality to regain its market share.
Exploration of different available options by cooperation of the concerned departments can result in recapturing of the lost market share, profitability and realization of long-term benefits. A multipronged approach of aggressive marketing and efficient distribution can equip the higher priced Aerial to compete with “BirdsI”.
Word count - 104
Table of contents
1) Situation Analysis………………………………………………………………… 5
2) Problem Statement ……………………………………………………………….. 6
3) Options……………………………………………………………………………. 6
4) Criteria for evaluation …………………………………………………………….. 7
5) Evaluation of options……………………………………………………………… 7
6) Recommendation ………………………………………………………………….. 11
7) Action Plan………………………………………………………………………… 11
8) Exhibit ……………………………………………………………………………... 12
Situation Analysis:
TerraCog Global Positioning System (GPS), since its inception in the late 1990’s, has steadily built up a strong relationship with key accounts and customers. It has been catering to a serious outdoor enthusiast’s market with its existing vector based graphics GPS having high durability, precision and some value added features.
Our competitor- Posthaste’s GPS prototype called “BirdsI” having static satellite imagery (different from the usual simple vector graphics GPS existing in the market) has been a success since its introduction in October 2006. Despite positive reviews and keen consumer interest during the unveiling of “BirdsI”, the TerraCog management decided not to go ahead with satellite imagery in its GPS, showing probable signs of
An impasse has occurred in the pricing decision of Aerial, TerraCog’s satellite imagery enabled GPS, due to a distinct mismatch in the price estimated by the production department and the desired price, set by the sales department. TerraCog, being already behind its competitor “BirdsI” by about two years, needs competitive pricing and superior quality to regain its market share.
Exploration of different available options by cooperation of the concerned departments can result in recapturing of the lost market share, profitability and realization of long-term benefits. A multipronged approach of aggressive marketing and efficient distribution can equip the higher priced Aerial to compete with “BirdsI”.
Word count - 104
Table of contents
1) Situation Analysis………………………………………………………………… 5
2) Problem Statement ……………………………………………………………….. 6
3) Options……………………………………………………………………………. 6
4) Criteria for evaluation …………………………………………………………….. 7
5) Evaluation of options……………………………………………………………… 7
6) Recommendation ………………………………………………………………….. 11
7) Action Plan………………………………………………………………………… 11
8) Exhibit ……………………………………………………………………………... 12
Situation Analysis:
TerraCog Global Positioning System (GPS), since its inception in the late 1990’s, has steadily built up a strong relationship with key accounts and customers. It has been catering to a serious outdoor enthusiast’s market with its existing vector based graphics GPS having high durability, precision and some value added features.
Our competitor- Posthaste’s GPS prototype called “BirdsI” having static satellite imagery (different from the usual simple vector graphics GPS existing in the market) has been a success since its introduction in October 2006. Despite positive reviews and keen consumer interest during the unveiling of “BirdsI”, the TerraCog management decided not to go ahead with satellite imagery in its GPS, showing probable signs of