TerraCog case study
Team 3
3/25/2015
In order to serve customer demand and recapture market share, TerraCog is preparing to launch “Project Aerial,” a new hand-held GPS device with satellite imagery. Although the GPS market is growing, GPS with satellite imagery is relatively new. TerraCog plans to take advantage of existing products by redesigning within its existing GPS platform. The company expected to launch Aerial by holiday season 2008.
TerraCog faces a tough situation characterized by dissension regarding whether to bring Project Aerial to market. If the company decides to go ahead with the launch, what is the pricing strategy? It falls to Emma Richardson, a newly promoted executive vice president, to push the group toward this decision.
Company and Project Analysis
TerraCog has multiple strengths. It has specialized in fishing sonar equipment since 1977 and the first GPS products were introduced in the late 1990s. The company has built its reputation around product quality. The company’s product design and functionality have always been complimented by customers’ word-of-mouth recommendations.
The company’s major weakness is an ineffective cross-functional team. Without clearly defined organization’s goals, managers act as islands. In addition, the company faces barriers to communication. The current climate creates a series of communication breakdowns.
Major opportunities for TerraCog include a growing market and consumer trends targeted by the company’s GPS product traits. The GPS product sector is expanding with many future opportunities for success.
Threats include barriers to enter the market at a competitive price point. Posthaste's “BirdsI” received an impressive sales rate nationwide with which TerraCog has not been able to keep pace. Moreover, developments in technology in the future may change this market beyond the company's ability to adapt.
How have departmental and individual objectives led to the