Executive Summary
TerraCog is one of the leading companies in the high-end GPS and sonar equipment
industry. One of its largest competitors, Posthaste, challenged the GPS industry with
BirdsI, an innovative device featuring satellite imagery. At the time of BirdsI launch,
Terracog executives were not impressed and decided to ignore this as a gimmick that its
target customers would not fall into. However, Posthaste has been more successful than
expected and now TerraCog has put project Aerial in the works to compete with BirdsI.
Terracog has been late to market in the past and still remained on top due to developing a
better quality product that better met the needs of its customers. Hoping this late release
will work the same way TerraCog is planning the Launch of Aerial for the upcoming
holiday season.
Problems
Goal: Launch Aerial to compete with BirdsI by the holiday season. Was this SMART?
Price
TerraCog has not been able to develop the product at a competitive price while keeping the
high quality they are known for, within the time of the expected Launch.
Ed Pryor (VP Sales) refuses to sell product unless price is low enough
Able to successfully launch late to market in the past due to better products. Late to market
this time with a worse product.
Alternative 1:
Abandon Aerial- Focus on new products
Alternative 2:
Redesign- Market Now at low price and cut costs later
Alternative 3:
Improve Aerial and Market later with a better product
Recommendation:
Option #3: Improve Aerial and Market Later with a better product. TerraCog has been able
